PPG Industries Prepares for Q4 Earnings Report Amid Mixed Market Performance
PPG Industries, Inc. (PPG), based in Pittsburgh, Pennsylvania, stands out as a prominent player in the global paints, coatings, and specialty materials market. With a market cap of $27.7 billion, PPG caters to various sectors, including automotive, aerospace, and construction, by providing innovative and sustainable solutions. As PPG approaches its Q4 earnings announcement set for Thursday, Jan. 16, industry watchers are keenly observing the anticipated outcomes.
Analysts Predict Growth in Q4 Earnings
Analysts forecast that PPG Industries will report a profit of $1.65 per share, representing a 7.8% rise from last year’s $1.53 per share. Notably, PPG has exceeded or matched the consensus estimates in three of the past four quarters, with one miss during that period.
Recent Earnings Performance Shows Mixed Results
In its latest quarter, PPG reported adjusted earnings of $2.13 per share, a slight shortfall against estimates. The lower performance in Industrial Coatings was a key factor in this miss. Conversely, the company saw growth in Performance Coatings, driven by increased prices and sales volumes.
Looking Ahead: 2024 and 2025 Projections
For fiscal 2024, projections show PPG Industries is expected to achieve earnings per share (EPS) of $8.15, marking a 6.3% increase from $7.67 in fiscal 2023. Furthermore, forecasts indicate a potential EPS growth of 8% year over year, reaching $8.80 per share in fiscal 2025.
Stock Performance Compared to Market Trends
Over the past year, PPG’s shares have declined 20.1%, falling short of the S&P 500 Index’s ($SPX) 23.3% gains and the iShares U.S. Basic Materials ETF’s (IYM) 6% decline.
Impact of Recent Earnings Report
PPG experienced a decrease in its stock price over the four sessions following the release of its Q3 earnings on Oct. 16, when revenue fell 1.3% year over year to $4.58 billion, missing the forecast of $4.65 billion. Despite a 2% volume growth and a significant 13% increase in income from its coatings segment, Industrial Coatings struggled with a 6% sales decline attributed to lower demand and index-based pricing challenges.
Future Strategies and Market Sentiment
Looking ahead, PPG anticipates flat organic sales for 2024 and plans to pursue growth through strategic divestitures and effective cost management to enhance margins.
The consensus opinion on PPG stock leans toward a “Moderate Buy,” with 11 out of 22 analysts recommending a “Strong Buy,” while the remaining 11 suggest holding the stock. PPG’s average analyst price target is $147.95, suggesting a potential upside of 23.9% from the current share price.
On the date of publication, Rashmi Kumari did not hold (either directly or indirectly) any positions in the securities mentioned in this article. All information and data are presented solely for informational purposes. For further details, please view the Barchart Disclosure Policy here. More news from Barchart
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