PPG Industries, Inc. (PPG), headquartered in Pittsburgh, Pennsylvania, is a global leader in paints, coatings, and specialty materials. With a market cap of $27.7 billion, PPG serves diverse industries, including automotive, aerospace, and construction, delivering innovative solutions that enhance performance and sustainability. Known for its commitment to quality and innovation, PPG is poised to report its Q4 earnings on Thursday, Jan. 16.
Ahead of the event, analysts expect PPG Industries to report a profit of $1.65 per share, up 7.8% from $1.53 in the year-ago quarter. The company surpassed and matched the consensus estimates in three of the last four quarters while missing on one other occasion.
Adjusted earnings for the last quarter came in at $2.13 per share, slightly below the consensus estimate. Weaker Industrial Coatings sales drove PPG's adjusted EPS miss, while year-over-year growth stemmed from higher prices and volumes in Performance Coatings.
For fiscal 2024, analysts expect PPG Industries to report EPS of $8.15, up 6.3% from $7.67 in fiscal 2023. Looking ahead, the company’s bottom line is projected to surge 8% year over year to $8.80 per share in fiscal 2025.
PPG Industries’ shares have declined 20.1% over the past year, significantly underperforming the S&P 500 Index’s ($SPX) 23.3% gains and the iShares U.S. Basic Materials ETF’s (IYM) 6% decline in the same timeframe.
PPG stock dropped over the four sessions following its Q3 earnings release on Oct. 16. Revenue fell 1.3% year over year to $4.58 billion, below the forecasted $4.65 billion. While the company’s coatings segment saw 2% volume growth and a 13% income increase from strong aerospace, protective, and architectural coatings sales, Industrial Coatings faced a 6% sales decline due to lower volumes and index-based pricing.
PPG expects flat organic sales for 2024 while focusing on growth opportunities through strategic divestitures and cost management to drive higher margins.
The consensus opinion on PPG stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 22 analysts covering the stock, 11 recommend “Strong Buy,” and 11 suggest “Hold.”
PPG's average analyst price target is $147.95, indicating a potential upside of 23.9% from the current levels.
