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PPG Industries (PPG) Q2 Earnings Beat Estimates, Sales Miss

PPG Industries, Inc. PPG has a diversified business and a leading position in several paints and coatings end markets. The company has taken steps to grow its business organically as well as reduce costs. However, PPG Industries faces a number of headwinds, including a still sluggish global economy. The company’s earnings are also exposed to unfavorable currency fluctuations.

Let’s have a quick look at this Pittsburgh-based coatings giant’s second-quarter 2017 release.

Estimate Trend & Surprise History

Investors should note that the earnings estimate for PPG Industries for the second quarter has been going down over the last month. PPG Industries has beaten the Zacks Consensus Estimate in all the 4 trailing quarters with an average beat of 1.11%.

Earnings

PPG Industries logged adjusted earnings of $1.83 per share for the quarter, up 5.8% year over year. It beat the Zacks Consensus Estimate of $1.81.

Revenues

PPG Industries posted second-quarter revenues of $3,806 million, up 1% year over year. It missed the Zacks Consensus Estimate of $3,898.6 million. Unfavorable currency swings impacted net sales by around 2%.

Key Stats/Developments to Note

PPG Industries saw flat sales volume year over year in the quarter, with variation by region and business unit. Volumes in the Performance Coatings segment declined 2% as compared to the prior year quarter.

The company said it will resume share repurchases from the third quarter. PPG has plans to deploy at least $2.5 billion to $3.5 billion of cash on acquisitions and share repurchases in 2017 and 2018 combined and is now targeting the top end of that range at a minimum.

PPG Industries, Inc. Price, Consensus and EPS Surprise

PPG Industries, Inc. Price, Consensus and EPS Surprise | PPG Industries, Inc. Quote

Zacks Rank

PPG Industries currently carries 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 inactive 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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