A month has passed by because the final earnings report for PPG Industries (PPG). Shares have misplaced about 6% in that timeframe, underperforming the S&P 500.
Will the current detrimental development proceed main as much as its subsequent earnings launch, or is PPG Industries due for a breakout? Earlier than we dive into how buyers and analysts have reacted as of late, let’s take a fast take a look at the latest earnings report with the intention to get a greater deal with on the essential catalysts.
PPG Industries’ Earnings and Gross sales Miss Estimates in Q3
PPG Industries reported a third-quarter 2024 revenue of $468 million or $2 per share, up from $426 million or $1.79 per share within the year-ago quarter.
Within the reported quarter, excluding one-time objects, adjusted earnings per share elevated to $2.13 from $2.07 within the year-ago quarter, lacking the Zacks Consensus Estimate of $2.15.
The corporate’s revenues had been roughly $4.57 billion within the quarter, down roughly 1.5% 12 months over 12 months. The autumn was as a result of mushy world industrial manufacturing, which affected demand within the Industrial Coatings phase. The highest line missed the Zacks Consensus Estimate of $4.65 billion.
Phase Evaluate
The Efficiency Coatings phase’s third-quarter revenues elevated 1.4% 12 months over 12 months to round $2.92 billion. Internet revenues elevated as a result of greater gross sales volumes and promoting costs. Phase revenue climbed 13%, pushed by greater gross sales volumes and costs, partly offset by normal value inflation.
Revenues within the Industrial Coatings phase had been down 6.2% 12 months over 12 months to roughly $1.65 billion. Internet gross sales had been decrease than the year-ago quarter as a result of a fall in gross sales volumes and promoting costs from some index-based consumer contracts. Phase revenue fell 19% over the earlier 12 months as a result of decrease gross sales volumes and lowered promoting costs on sure index-based pricing contracts.
Financials
On the finish of the third quarter, the corporate had roughly $1.25 billion in money and money equivalents, up round 2.7% 12 months over 12 months. Lengthy-term debt was round $6.14 billion, up from $5.6 billion within the prior-year quarter.
Outlook
PPG anticipates flat natural gross sales and adjusted earnings per share on the backside finish of the $8.15 to $8.30 vary for full-year 2024.
How Have Estimates Been Shifting Since Then?
Prior to now month, buyers have witnessed a downward development in recent estimates.
VGM Scores
Presently, PPG Industries has a pleasant Development Rating of B, although it’s lagging quite a bit on the Momentum Rating entrance with a D. Charting a considerably comparable path, the inventory was allotted a grade of C on the worth aspect, placing it within the center 20% for this funding technique.
General, the inventory has an mixture VGM Rating of B. In case you aren’t centered on one technique, this rating is the one you ought to be concerned with.
Outlook
Estimates have been broadly trending downward for the inventory, and the magnitude of those revisions signifies a downward shift. It is no shock PPG Industries has a Zacks Rank #4 (Promote). We count on a under common return from the inventory within the subsequent few months.
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PPG Industries, Inc. (PPG) : Free Stock Analysis Report
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