We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
PPG Industries (PPG) Q1 Earnings and Revenues Top Estimates
Read MoreHide Full Article
PPG Industries Inc. (PPG - Free Report) logged net income of $18 million or 8 cents per share in first-quarter 2022, down from the year-ago quarter’s profit of $378 million or $1.58 per share.
Barring one-time items, adjusted earnings were $1.37 per share in the reported quarter, down from $1.88 logged in the year-ago quarter. However, the figure topped the Zacks Consensus Estimate of $1.12.
Net sales rose roughly 11% year over year to $4,308 million. The figure beat the Zacks Consensus Estimate of $4,232.4 million. Organic sales rose 7%, aided by higher selling prices and strong sales volumes in a number of end-use markets including automotive refinish. Recent acquisitions also contributed to the top line growth.
However, the company faced headwinds from supply-chain disruptions, raw material cost inflation and higher energy and transportation costs in the quarter.
PPG Industries, Inc. Price, Consensus and EPS Surprise
Performance Coatings: Net sales in the segment were $2,570 million in the first quarter, up 11% year over year, driven by acquisitions and higher selling prices. Sales volume in the segment inched down around 2%. Selling prices rose 8% year over year. The company saw strong demand in most end-use markets. But raw material availability continued to limit sales in many of its businesses, especially in architectural coatings Americas and Asia Pacific, traffic solutions, and automotive refinish.
Segment income declined 17% year over year to $319 million. The downside was caused by raw material, energy and logistics cost inflation, higher manufacturing costs and lower sales volumes, partly offset by increased selling prices along with restructuring cost savings.
Industrial Coatings: Sales in the segment totaled around $1,738 million, up 11% year over year. Sales rose due to higher selling prices across all businesses and contributions of acquisitions, partly offset by lower sales volumes. Sales volumes declined 5% year over year and selling prices were up 12% year over year.
Net income in the segment totaled $140 million, down 43% year over year. It was lower than the previous year’s levels primarily due to raw material cost inflation and higher operating costs due to intermittent manufacturing outages as well as reduced sales volumes. The downside was partly offset by higher selling prices, restructuring cost savings and acquisition-related earnings.
Financials
PPG Industries ended the quarter with cash and cash equivalents of $960 million, down roughly 47% year over year. Long-term debt rose around 28% year over year to $6,834 million.
Outlook
Moving ahead, the company sees overall underlying demand for its products to remain strong, including sustained recovery in certain end-use markets. It also expects further volume growth in automotive refinish and aerospace coatings businesses in the coming quarters.
Although PPG expects supply disruptions to persist, it envisions further sequential raw material availability improvements led by higher supplier manufacturing capabilities and labor availability in the United States, and reduced demand in Europe. PPG Industries is undertaking additional measures to increase selling prices across all businesses in the wake of higher global energy prices. The continued geopolitical issues in Europe and pandemic-related restrictions in China also resulted in higher level of near-term economic uncertainty, the company noted.
PPG Industries projects earnings per share (EPS) of between $1.44 and $1.74 for second-quarter 2022. Adjusted EPS are expected in the range of $1.60-$1.90, excluding amortization expenses of 14 cents and costs related to earlier approved and communicated business restructuring of 2 cents.
The company expects aggregate net sales volumes to be down a low-to-mid-single-digit percentage on a year-over-year basis in the second quarter. Corporate expenses are projected to be $60-$70 million. Net interest expenses are forecast to be around $26-$30 million.
Price Performance
Shares of PPG Industries have lost 22.4% in the past year compared with a 2.6% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
PPG Industries currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Nutrien Ltd. (NTR - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Commercial Metals Company (CMC - Free Report) .
Nutrien, sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 118% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 29.6% upward over the last 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of roughly 60.3%, on average. NTR has rallied around 101% in a year.
AdvanSix, carrying a Zacks Rank #1, has an expected earnings growth rate of 54.7% for the current year. ASIX's consensus estimate for current-year earnings has been revised 35% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied around 82% in a year.
Commercial Metals, carrying a Zacks Rank #1, has a projected earnings growth rate of 114.7% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 35.1% upward over the past 60 days.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 13.7%, on average. CMC has gained around 54% in a year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
PPG Industries (PPG) Q1 Earnings and Revenues Top Estimates
PPG Industries Inc. (PPG - Free Report) logged net income of $18 million or 8 cents per share in first-quarter 2022, down from the year-ago quarter’s profit of $378 million or $1.58 per share.
Barring one-time items, adjusted earnings were $1.37 per share in the reported quarter, down from $1.88 logged in the year-ago quarter. However, the figure topped the Zacks Consensus Estimate of $1.12.
Net sales rose roughly 11% year over year to $4,308 million. The figure beat the Zacks Consensus Estimate of $4,232.4 million. Organic sales rose 7%, aided by higher selling prices and strong sales volumes in a number of end-use markets including automotive refinish. Recent acquisitions also contributed to the top line growth.
However, the company faced headwinds from supply-chain disruptions, raw material cost inflation and higher energy and transportation costs in the quarter.
PPG Industries, Inc. Price, Consensus and EPS Surprise
PPG Industries, Inc. price-consensus-eps-surprise-chart | PPG Industries, Inc. Quote
Segment Highlights
Performance Coatings: Net sales in the segment were $2,570 million in the first quarter, up 11% year over year, driven by acquisitions and higher selling prices. Sales volume in the segment inched down around 2%. Selling prices rose 8% year over year. The company saw strong demand in most end-use markets. But raw material availability continued to limit sales in many of its businesses, especially in architectural coatings Americas and Asia Pacific, traffic solutions, and automotive refinish.
Segment income declined 17% year over year to $319 million. The downside was caused by raw material, energy and logistics cost inflation, higher manufacturing costs and lower sales volumes, partly offset by increased selling prices along with restructuring cost savings.
Industrial Coatings: Sales in the segment totaled around $1,738 million, up 11% year over year. Sales rose due to higher selling prices across all businesses and contributions of acquisitions, partly offset by lower sales volumes. Sales volumes declined 5% year over year and selling prices were up 12% year over year.
Net income in the segment totaled $140 million, down 43% year over year. It was lower than the previous year’s levels primarily due to raw material cost inflation and higher operating costs due to intermittent manufacturing outages as well as reduced sales volumes. The downside was partly offset by higher selling prices, restructuring cost savings and acquisition-related earnings.
Financials
PPG Industries ended the quarter with cash and cash equivalents of $960 million, down roughly 47% year over year. Long-term debt rose around 28% year over year to $6,834 million.
Outlook
Moving ahead, the company sees overall underlying demand for its products to remain strong, including sustained recovery in certain end-use markets. It also expects further volume growth in automotive refinish and aerospace coatings businesses in the coming quarters.
Although PPG expects supply disruptions to persist, it envisions further sequential raw material availability improvements led by higher supplier manufacturing capabilities and labor availability in the United States, and reduced demand in Europe. PPG Industries is undertaking additional measures to increase selling prices across all businesses in the wake of higher global energy prices. The continued geopolitical issues in Europe and pandemic-related restrictions in China also resulted in higher level of near-term economic uncertainty, the company noted.
PPG Industries projects earnings per share (EPS) of between $1.44 and $1.74 for second-quarter 2022. Adjusted EPS are expected in the range of $1.60-$1.90, excluding amortization expenses of 14 cents and costs related to earlier approved and communicated business restructuring of 2 cents.
The company expects aggregate net sales volumes to be down a low-to-mid-single-digit percentage on a year-over-year basis in the second quarter. Corporate expenses are projected to be $60-$70 million. Net interest expenses are forecast to be around $26-$30 million.
Price Performance
Shares of PPG Industries have lost 22.4% in the past year compared with a 2.6% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
PPG Industries currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Nutrien Ltd. (NTR - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Commercial Metals Company (CMC - Free Report) .
Nutrien, sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 118% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 29.6% upward over the last 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of roughly 60.3%, on average. NTR has rallied around 101% in a year.
AdvanSix, carrying a Zacks Rank #1, has an expected earnings growth rate of 54.7% for the current year. ASIX's consensus estimate for current-year earnings has been revised 35% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied around 82% in a year.
Commercial Metals, carrying a Zacks Rank #1, has a projected earnings growth rate of 114.7% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 35.1% upward over the past 60 days.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 13.7%, on average. CMC has gained around 54% in a year.