PPG Industries Faces Earnings Decline Ahead of Q1 Report

Pittsburgh-based PPG Industries, Inc. (PPG), a significant player in paints, coatings, and specialty materials, serves diverse sectors such as automotive, aerospace, and construction. The company holds a market capitalization of $25 billion and is acclaimed for its innovative, sustainable solutions. Set to announce its Q1 earnings on Thursday, April 17, PPG is focused on advancing coatings technology.

Analysts predict PPG Industries will report earnings of $1.62 per share. This figure represents a 12.9% decline from $1.86 per share recorded in the prior year’s quarter. Analyzing the past year, PPG has produced mixed results: it has surpassed or met consensus estimates in two of the last four quarters while falling short in two others.

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In the last quarter, adjusted earnings per share (EPS) were reported at $1.61, falling 2.4% below forecasts due to weaker sales in Industrial Coatings.

Looking ahead, analysts forecast a slight increase in EPS for fiscal 2025 to $7.93, up from $7.87 in fiscal 2024. Furthermore, earnings are expected to accelerate to $8.81 in fiscal 2026, marking an 11.1% year-over-year growth.

Over the past year, shares of PPG Industries have dropped 26.6%, notably lagging behind the S&P 500 Index, which gained 3.6%, and the S&P 500 Materials Sector SPDR (XLB), experiencing a 10.6% decline during the same period.

After releasing its fourth-quarter earnings on January 30, PPG’s stock price fell by 6% on the following trading day. The company reported a 5% decline in net sales to $3.7 billion, largely attributed to decreased demand for industrial and architectural coatings amid rising U.S. mortgage rates and slowing factory activity.

The consensus view on PPG stock leans moderately bullish. Among the 23 analysts covering the stock, eight recommend a “Strong Buy,” while 15 suggest a “Hold.”

Currently, PPG’s average analyst price target stands at $131.79, suggesting a potential upside of 26.7% from the present price.

On the date of publication, Kritika Sarmah did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is intended solely for informational purposes. For more on the Barchart Disclosure Policy, please view it here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.