PPG Industries Inc. PPG has a diversified business and a leading position in several paints and coatings end markets. The company is gaining from healthy momentum across automotive OEM, automotive refinish and aerospace markets.
PPG Industries also has been actively focused on growing its business inorganically, manifested by major buyouts of Akzo Nobel’s North American architectural coatings assets and Mexico’s leading paint company – Comex. However, currency headwinds and weakness in Europe have been concerns for the company.
Let’s have a quick look at this Pittsburgh-based coating giant’s third-quarter 2015 release.
Estimate Trend & Surprise History
Investors should note that the earnings estimate for PPG Industries for the third quarter has seen a downward trend over the last month. PPG Industries has delivered a flurry of positive earnings surprises. It has beaten the Zacks Consensus Estimate in the trailing 4 quarters with an average beat of 3.26%. Investors have been eagerly awaiting PPG Industries’ latest earnings report to see whether it continues the winning streak.
Earnings
PPG Industries logged adjusted earnings of $1.61 per share that were in line with the Zacks Consensus Estimate. Strong performance from the company’s Comex acquisition as well as aggressive cost-management actions and continued cash deployment supported the results.
Revenues
PPG Industries posted third-quarter revenues of $3,872 million, down around 1.6% year over year. That trailed the Zacks Consensus Estimate of $4,044 million. Unfavorable currency impact weighed on sales.
Key Stats/Developments to Note
PPG Industries expects a resumption of growth in volumes in fourth-quarter 2015 owing to continued global economic expansion, absence of customer destocking and gains from the Comex acquisition. The company is further optimistic about its prior announced restructuring efforts, synergies from its ongoing acquisitions and cash deployment. PPG Industries also anticipates the unfavorable impact of foreign currency translation to moderate in the fourth quarter.
Zacks Rank
PPG Industries currently has a Zacks Rank #4 (Sell), but that could change following the company’s earnings report which was just released.
Market Reaction
PPG Industries’ shares were down around 0.6% in pre-market trading. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on PPG Industries’ earnings report!
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