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PPG Industries (PPG) Q1 Earnings and Sales Beat 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 exposed to unfavorable currency fluctuations.

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

Estimate Trend & Surprise History

Investors should note that the earnings estimate for PPG Industries for the first quarter has been stable over the last month. PPG Industries has beaten the Zacks Consensus Estimate in 3 out of the 4 trailing quarters with an average beat of 0.54%, while coming in line in 1 quarter.

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 $1.35 per share for the quarter, up 6.3% year over year. It beat the Zacks Consensus Estimate of $1.31. Adjusted earnings exclude one-time items including pension settlement charges.

Revenues

PPG Industries posted first-quarter revenues of $3,569 million, up 0.7% year over year. It exceeded the Zacks Consensus Estimate of $3,533 million. Unfavorable currency swings impacted net sales by 2%. 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 mid-single-digit volumes growth in the Industrial Coatings business. Volumes in the Performance Coatings segment were in line with prior year. In the quarter, the company repurchased shares worth $165 million. The company reaffirmed its plans to deploy at least $2.5 billion to $3.5 billion of cash on acquisitions and share repurchases in 2017 and 2018 combined.

Zacks Rank

PPG Industries currently carries a Zacks Rank #3 (Hold), 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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