PPG Industries Inc. (PPG - Free Report) is set to release second-quarter 2021 results after the closing bell on Jul 19. The paint giant’s results will likely reflect the benefits of strong global architectural coatings business as well as aggressive cost-cutting and restructuring actions.
PPG Industries’ earnings beat the Zacks Consensus Estimate in all of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 18.3%, on average. The company posted an earnings surprise of around 19% in the last reported quarter.
Shares of the company have rallied 47% in the past year compared with 36.3% rise of the industry.
Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
PPG Industries envisions adjusted earnings for the second quarter to be $2.15-$2.2 per share. It expects sequential net sales to rise a low-teen percentage in the second quarter compared with the first quarter and in-line with historical pre-pandemic sequential quarterly changes.
The Zacks Consensus Estimate for revenues for PPG Industries for the to-be-reported quarter is at $4,302 million, suggesting year-over-year rise of 42.7%.
The Zacks Consensus Estimate for revenues in the Industrial Coatings unit is currently pegged at $1,582 million, calling for an increase of around 67.2% year over year. The consensus mark for revenues in the Performance Coatings segment is pegged at $2,740 million, indicating about 32.4% year-over-year rise.
Factors at Play
The company’s second-quarter performance is expected to have benefited from cost-cutting and restructuring measures. PPG Industries announced significant restructuring actions, which are mainly focused on regions and end-use markets with the weakest business conditions. It expects roughly $30 million in cost savings from restructuring programs in the second quarter.
The company is also taking steps to grow business inorganically through value-creating acquisitions. Strategic buyouts (including Ennis-Flint) are likely to have contributed to sales in the second quarter.
The company is also expected to have witnessed consistent strength in its global architectural coatings business. It is likely to have gained from demand improvements for automotive and general industrial coatings in the quarter to be reported. Higher selling prices are also likely to have aided sales and margins in the Performance Coatings unit.
However, sales volumes in aerospace remain under pressure due to reduced customer builds and lower miles flown globally. Moreover, PPG Industries is exposed to headwinds from raw material and logistics cost inflation. The company expects an unfavorable impact of $30-$60 million related to raw material supply disruptions on sales of its Performance Coatings unit in the second quarter.
Zacks Model
Our proven model does not conclusively predict an earnings beat for PPG Industries this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for PPG Industries is 0.00%. The Zacks Consensus Estimate for earnings is currently pegged at $2.19. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: PPG Industries currently carries a Zacks Rank #2.
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Cabot Corporation (CBT - Free Report) , scheduled to release earnings on Aug 9, has an Earnings ESP of +14.81% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Barrick Gold Corporation (GOLD - Free Report) , scheduled to release earnings on Aug 9, has an Earnings ESP of +12.21% and carries a Zacks Rank #3.
Agnico Eagle Mines Limited (AEM - Free Report) , scheduled to release earnings on Jul 28, has an Earnings ESP of +14.83% and carries a Zacks Rank #3.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
PPG Industries Inc. (PPG - Free Report) is set to release second-quarter 2021 results after the closing bell on Jul 19. The paint giant’s results will likely reflect the benefits of strong global architectural coatings business as well as aggressive cost-cutting and restructuring actions.
PPG Industries’ earnings beat the Zacks Consensus Estimate in all of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 18.3%, on average. The company posted an earnings surprise of around 19% in the last reported quarter.
Shares of the company have rallied 47% in the past year compared with 36.3% rise of the industry.
Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
PPG Industries envisions adjusted earnings for the second quarter to be $2.15-$2.2 per share. It expects sequential net sales to rise a low-teen percentage in the second quarter compared with the first quarter and in-line with historical pre-pandemic sequential quarterly changes.
The Zacks Consensus Estimate for revenues for PPG Industries for the to-be-reported quarter is at $4,302 million, suggesting year-over-year rise of 42.7%.
The Zacks Consensus Estimate for revenues in the Industrial Coatings unit is currently pegged at $1,582 million, calling for an increase of around 67.2% year over year. The consensus mark for revenues in the Performance Coatings segment is pegged at $2,740 million, indicating about 32.4% year-over-year rise.
Factors at Play
The company’s second-quarter performance is expected to have benefited from cost-cutting and restructuring measures. PPG Industries announced significant restructuring actions, which are mainly focused on regions and end-use markets with the weakest business conditions. It expects roughly $30 million in cost savings from restructuring programs in the second quarter.
The company is also taking steps to grow business inorganically through value-creating acquisitions. Strategic buyouts (including Ennis-Flint) are likely to have contributed to sales in the second quarter.
The company is also expected to have witnessed consistent strength in its global architectural coatings business. It is likely to have gained from demand improvements for automotive and general industrial coatings in the quarter to be reported. Higher selling prices are also likely to have aided sales and margins in the Performance Coatings unit.
However, sales volumes in aerospace remain under pressure due to reduced customer builds and lower miles flown globally. Moreover, PPG Industries is exposed to headwinds from raw material and logistics cost inflation. The company expects an unfavorable impact of $30-$60 million related to raw material supply disruptions on sales of its Performance Coatings unit in the second quarter.
Zacks Model
Our proven model does not conclusively predict an earnings beat for PPG Industries this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for PPG Industries is 0.00%. The Zacks Consensus Estimate for earnings is currently pegged at $2.19. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: PPG Industries currently carries a Zacks Rank #2.
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Cabot Corporation (CBT - Free Report) , scheduled to release earnings on Aug 9, has an Earnings ESP of +14.81% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Barrick Gold Corporation (GOLD - Free Report) , scheduled to release earnings on Aug 9, has an Earnings ESP of +12.21% and carries a Zacks Rank #3.
Agnico Eagle Mines Limited (AEM - Free Report) , scheduled to release earnings on Jul 28, has an Earnings ESP of +14.83% and carries a Zacks Rank #3.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Get the latest research report on PPG - FREE
Get the latest research report on AEM - FREE
Get the latest research report on CBT - FREE
Get the latest research report on GOLD - FREE