PPG Industries Earnings Preview: What to Expect on October 16th
Get ready for a key earnings release as PPG Industries (PPG) gears up to unveil its latest quarterly results on Wednesday, October 16th. Analysts are anticipating an earnings per share (EPS) of $2.15, but investors will be keenly watching for more than just a beat on estimates.
The real focus will be on the guidance PPG provides for the upcoming quarter. This is crucial for investors as it offers a glimpse into the company’s future prospects and can significantly impact stock performance.
Looking Back at PPG’s Recent Performance
In the previous quarter, PPG exceeded EPS expectations by a narrow margin of $0.02. However, this positive news was not enough to prevent a 2.79% drop in share price the following day. This highlights how much weight investors give to guidance in their market decisions.
Here’s a quick look at PPG’s past performance and the resulting price changes:
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Q2 2024:
EPS Estimate: 2.48, EPS Actual: 2.50, Price Change: -3.0%*
Q1 2024:
EPS Estimate: 1.86, EPS Actual: 1.86, Price Change: -3.0%*
Q4 2023:
EPS Estimate: 1.50, EPS Actual: 1.53, Price Change: -2.0%*
Q3 2023:
EPS Estimate: 1.95, EPS Actual: 2.07, Price Change: -3.0%PPG’s Stock Performance: A Bullish Outlook
As of October 14th, PPG shares were trading at $128.5. Over the past 52 weeks, shares have shown a positive trend, increasing by 2.63%. This upward trajectory suggests a bullish sentiment among long-term shareholders going into this earnings release.
Analyst Sentiment on PPG
It’s essential for investors to stay informed about market expectations and sentiment in the industry. Analysts have given PPG a total of 7 ratings, with the consensus rating being Neutral. The average one-year price target stands at $147.57, indicating a potential 14.84% upside.
Peer Comparison: How Does PPG Stack Up?
To gain further insights, let’s compare PPG’s performance with its industry peers: Intl Flavors & Fragrances, DuPont de Nemours, and RPM Intl. This comparative analysis reveals the relative performance expectations and market positioning of these players.
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Intl Flavors & Fragrances:
Analysts see an Outperform trajectory, with an average 1-year price target of $109.78, implying a potential 14.57% downside.*
DuPont de Nemours:
Analysts are projecting a Buy trajectory, with an average 1-year price target of $93.0, indicating a potential 27.63% downside.*
RPM Intl:
Analysts favor a Neutral trajectory, with an average 1-year price target of $132.92, suggesting a potential 3.44% upside.Peer Comparative Analysis Summary
Here’s a snapshot of key metrics for the three industry players:
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|—|—|—|—|—|
| PPG Indus | Neutral | -1.60% | $2.06B | 6.72% |
| Intl Flavors & Fragrances | Outperform | -1.37% | $1.07B | 1.19% |
| DuPont de Nemours | Buy | 2.49% | $1.18B | 0.76% |
| RPM Intl | Neutral | -2.14% | $836.67M | 8.79% |
Key Takeaway:
* PPG ranks in the middle for revenue growth among its peers.
* PPG tops the list in terms of gross profit.
* PPG falls behind its peers in terms of return on equity.
PPG Industries: A Global Coatings Leader
PPG is a global powerhouse in the coatings industry. Following its acquisition of selected assets from Akzo Nobel, the company is now the world’s largest coatings producer. PPG’s products are sold to a diverse range of customers, including the automotive, aerospace, construction, and industrial markets. The company boasts a global presence, with less than half of its sales currently coming from North America. PPG remains focused on its core coatings and specialty products, with a strategy to expand into emerging markets, as evidenced by its acquisition of Comex.
Unveiling PPG’s Financial Story
Market Capitalization:
PPG’s market capitalization stands above the industry average, highlighting its significant scale and strong market presence.Revenue Challenges:
While PPG’s revenue growth faced challenges over the past three months, experiencing a decline of approximately -1.6% as of June 30, 2024, indicating a decrease in top-line earnings. Compared to its peers, PPG’s revenue growth lags behind the industry.Net Margin:
PPG boasts an impressive net margin of 11.01%, exceeding industry averages, indicating strong profitability and effective cost control.Return on Equity (ROE):
PPG’s ROE also surpasses industry benchmarks, reaching 6.72%, showcasing its effective utilization of equity capital.Return on Assets (ROA):
PPG’s ROA outperforms industry benchmarks, achieving 2.42%, signifying efficient asset management and robust financial health.Debt Management:
PPG’s debt-to-equity ratio is below the industry average, at 0.93. This indicates a lower reliance on debt financing and a healthy balance between debt and equity, a positive signal for investors.To stay up-to-date on all PPG Industries’ earnings releases, be sure to visit their earnings calendar on our website.
