PPG Industries Inc. Earnings: Powering Ahead

S&P 500 (NYSE:SPY) component PPG Industries Inc. (NYSE:PPG) reported net income above Wall Street’s expectations for the fourth quarter. PPG Industries makes coatings, glass, and chemical products.

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PPG Industries Earnings Cheat Sheet for the Fourth Quarter.

Results: Net income for PPG Industries Inc. rose to $216 million ($1.39 per share) vs. $205 million ($1.24 per share) in the same quarter a year earlier. This marks a rise of 5.4% from the year earlier quarter.

Revenue: Rose 4.1% to $3.52 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: PPG beat the mean analyst estimate of $1.28 per share. Analysts were expecting revenue of $3.5 billion.

Quoting Management: “PPG achieved record earnings per share each quarter this year by focusing on strong execution in its global businesses, aggressive cost management and amplified cash deployment,” said Charles E. Bunch, PPG chairman and CEO. “In so doing, we delivered the best full year earnings per share in PPG’s history.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 18.7% and in the second quarter, the figure rose 25%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 3 cents in the third quarter, by 10 cents in the second quarter, and by 6 cents in the first quarter.

Gross margin shrank 0.4 percentage point to 37.9%. The contraction appeared to be driven by increased costs, which rose 4.7% from the year earlier quarter while revenue rose 4.1%.

Revenue has risen the past four quarters. Revenue increased 11.2% to $3.85 billion in the third quarter. The figure rose 15.3% in the second quarter from the year earlier and climbed 13% in the first quarter 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 first quarter of the next fiscal year has fallen from $1.55 per share to $1.43. Over the past sixty days, the average estimate for the fiscal year has reached $6.78 abs per share, a decline from $6.95.

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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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

 

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com