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PPG Industries (PPG) Q4 Earnings Beat, Sales Miss Estimates

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PPG Industries Inc. ((PPG - Free Report) ) 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 heavily exposed to unfavorable currency fluctuations.

Let’s have a quick look at this Pittsburgh-based coating giant’s fourth-quarter 2016 release.

Estimate Trend & Surprise History

Investors should note that the earnings estimate for PPG Industries for the fourth quarter has been stable over the last month. PPG Industries has beaten the Zacks Consensus Estimate in 2 out of the 4 trailing quarters with an average beat of 0.33%, while coming in line in 2 quarters.

PPG Industries Inc. Price and EPS Surprise

 

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

Earnings

PPG Industries logged adjusted earnings of $1.19 per share for the quarter, up 2.6% year over year. It beat the Zacks Consensus Estimate of $1.18. Adjusted earnings exclude one-time items including business restructuring charges.

Revenues

PPG Industries posted fourth-quarter revenues of $3,497 million, down 1.5% year over year. It trailed the Zacks Consensus Estimate of $3,552 million. Unfavorable currency swings impacted net sales by 3%. The net effect of portfolio actions contributed less than 1% to sales.

Key Stats/Developments to Note

PPG Industries saw its sales volume grow year over year in the quarter, supported by a 5% volumes growth in the Industrial Coatings business. Volumes in the Performance Coatings segment declined less than 1%. The company completed its cash deployment commitment, achieving the upper end of the set target. In the quarter, the company repurchased shares worth $650 million.

Zacks Rank

PPG Industries currently has a Zacks Rank #3 (Hold).

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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