PPG Industries Inc. Earnings Cheat Sheet: Profits Grow by Double Digits For Fifth Straight Quarter

S&P 500 (NYSE:SPY) component PPG Industries Inc. (NYSE:PPG) reported its results for the third quarter. PPG Industries makes coatings, glass, and chemical products. .

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PPG Industries Earnings Cheat Sheet for the Third Quarter

Results: Net income for the specialty chemicals company rose to $311 million ($1.96 per share) vs. $262 million ($1.58 per share) in the same quarter a year earlier. This marks a rise of 18.7% from the year earlier quarter.

Revenue: Rose 11.2% to $3.85 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: PPG beat the mean analyst estimate of $1.93 per share. Analysts were expecting revenue of $3.88 billion.

Quoting Management: “This is the fifth consecutive quarter in which we eclipsed our prior quarterly earnings record,” said Charles E. Bunch, PPG chairman and CEO. “This consistent improvement in performance, especially in light of today’s economic backdrop, demonstrates the value of our management’s aggressive focus on operations and the continuing benefit of the structural changes that we have made to the company the past few years, including lowering our cost base and expanding in emerging regions. In addition, these results reflect the continuing benefits of our disciplined deployment of our strong cash position.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 25% and in the first quarter, the figure rose more than sevenfold.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 10 cents in the second quarter, by 6 cents in the first quarter, and by 12 cents in the fourth quarter of the last fiscal year.

Gross margin shrank 0.2 percentage point to 38.9%. The contraction appeared to be driven by increased costs, which rose 11.6% from the year earlier quarter while revenue rose 11.2%.

Revenue has risen the past four quarters. Revenue increased 15.3% to $3.99 billion in the second quarter. The figure rose 13% in the first quarter from the year earlier and climbed 8.4% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: Expectations for the company’s next quarter results are lower than they have been. Over the past sixty days, the average estimate for fourth quarter has fallen from $1.52 per share to $1.47. For the fiscal year, the average estimate has moved up from $6.78 a share to $6.90 over the last ninety days.

Competitors to Watch: The Valspar Corporation (NYSE:VAL), RPM International Inc. (NYSE:RPM), Sherwin-Williams Company (NYSE:SHW), E.I. du Pont de Nemours & Co. (NYSE:DD), Akzo Nobel N.V. (AKZOY), Southwall Technologies (SWTXD), Olin Corporation (NYSE:OLN), Corning Incorporated (NYSE:GLW), and FMC Corporation (NYSE:FMC).

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(Source: Xignite Financials)