Pittsburgh-based PPG Industries, Inc. (PPG) manufactures and distributes a wide range of paints, coatings, and specialty materials for various uses, including industrial equipment, packaging, aircraft, marine, automotive, and pavement marking. The company's current market cap stands at $29.1 billion, and it is set to announce its Q2 earnings for fiscal 2024 on Thursday, July 18.
Ahead of the event, analysts expect PPG Industries to report a profit of $2.49 per share, up 10.7% from $2.25 per share in the year-ago quarter. The company has exceeded or beat Wall Street’s EPS estimates in three of the last four quarters.
PPG Industries’ EPS of $1.86 for the last reported quarter rose 2.2% year over year, matching the consensus estimate. This uptrend can be attributed to solid demand in its well-established businesses in Mexico and China.
Looking ahead, analysts expect PPG Industries to report an EPS of $8.44 in fiscal 2024, up 10% from $7.67 in fiscal year 2023. Its fiscal 2025 EPS is projected to rise 11.4% annually to $9.40.
PPG stock has dropped 16.1% over the past 52 weeks, underperforming the broader S&P 500 Index's ($SPX) 23.2% gains and the S&P 500 Material Sector SPDR Fund’s (XLB) 4.8% returns over the same time frame.
On April 18, PPG Industries announced its Q1 earnings, and its stock rose marginally and fell 3.1% in the following trading session. While it topped the EPS estimates, its revenue was $4.31 billion, below the forecast of $4.43 billion. For Q1, PPG expects earnings per share to be between $2.42 and $2.52, driven by aerospace, protective and marine, and packaging coatings, supported by robust performance in Mexico, China, and India.
PPG Industries delivered strong Q1 earnings driven by robust performances in key markets such as Mexico and China, as well as growth in India and long-cycle sectors like protective and marine coatings, and aerospace coatings. Despite these successes, the quarter presented challenges. The company faced significant customer load-in and pass-through energy surcharges in Europe. Additionally, lower demand in Europe, exacerbated by an early Easter holiday that reduced March selling days, and tepid global industrial coatings demand posed further hurdles.
Despite the challenges, the current consensus opinion on PPG Industries stock is “Moderate Buy” overall. Out of 22 analysts covering the stock, 12 suggest a “Strong Buy,” and 10 advise a “Hold.”
Furthermore, the average analyst price target for PPG Industries is $158.74, indicating a potential upside of 28% from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
