Earnings Preview: PPG Indus

PPG Indus (NYSE:PPG) is set to give its latest quarterly earnings report on Wednesday, 2024-10-16. Here's what investors need to know before the announcement.

Analysts estimate that PPG Indus will report an earnings per share (EPS) of $2.15.

Anticipation surrounds PPG Indus's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Performance in Previous Earnings

During the last quarter, the company reported an EPS beat by $0.02, leading to a 2.79% drop in the share price on the subsequent day.

Here's a look at PPG Indus's past performance and the resulting price change:

Quarter	Q2 2024	Q1 2024	Q4 2023	Q3 2023
EPS Estimate	2.48	1.86	1.50	1.95
EPS Actual	2.50	1.86	1.53	2.07
Price Change %	-3.0%	-3.0%	-2.0%	-3.0%

Tracking PPG Indus's Stock Performance

Shares of PPG Indus were trading at $128.5 as of October 14. Over the last 52-week period, shares are up 2.63%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Take on PPG Indus

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on PPG Indus.

Analysts have given PPG Indus a total of 7 ratings, with the consensus rating being Neutral. The average one-year price target is $147.57, indicating a potential 14.84% upside.

Peer Ratings Comparison

In this comparison, we explore the analyst ratings and average 1-year price targets of Intl Flavors & Fragrances, DuPont de Nemours and RPM Intl, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• The consensus among analysts is an Outperform trajectory for Intl Flavors & Fragrances, with an average 1-year price target of $109.78, indicating a potential 14.57% downside.
• For DuPont de Nemours, analysts project an Buy trajectory, with an average 1-year price target of $93.0, indicating a potential 27.63% downside.
• As per analysts' assessments, RPM Intl is favoring an Neutral trajectory, with an average 1-year price target of $132.92, suggesting a potential 3.44% upside.

Peers Comparative Analysis Summary

The peer analysis summary provides a snapshot of key metrics for Intl Flavors & Fragrances, DuPont de Nemours and RPM Intl, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Company	Consensus	Revenue Growth	Gross Profit	Return on Equity
PPG Indus	Neutral	-1.60%	$2.06B	6.72%
Intl Flavors & Fragrances	Outperform	-1.37%	$1.07B	1.19%
DuPont de Nemours	Buy	2.49%	$1.18B	0.76%
RPM Intl	Neutral	-2.14%	$836.67M	8.79%

Key Takeaway:

PPG Indus ranks in the middle for revenue growth among its peers. It ranks at the top for gross profit. It is at the bottom for return on equity.

Unveiling the Story Behind PPG Indus

PPG is a global producer of coatings. The company is the world's largest producer of coatings after the purchase of selected Akzo Nobel assets. PPG's products are sold to a wide variety of end users, including the automotive, aerospace, construction, and industrial markets. The company has a footprint in many regions around the globe, with less than half of sales coming from North America in recent years. PPG is focused on its coatings and specialty products and expansion into emerging regions, as exemplified by the Comex acquisition.

PPG Indus: Delving into Financials

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Revenue Challenges: PPG Indus's revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately -1.6%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Materials sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 11.01%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 6.72%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): PPG Indus's ROA excels beyond industry benchmarks, reaching 2.42%. This signifies efficient management of assets and strong financial health.

Debt Management: PPG Indus's debt-to-equity ratio is below the industry average. With a ratio of 0.93, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for PPG Indus visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.