We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
PPG Industries Issues July Sales Update, Raises Q3 Estimates
Read MoreHide Full Article
PPG Industries Inc. (PPG - Free Report) announced that total net sales for July surpassed its original estimates, reflecting a continuation of the strong demand recovery experienced in June.
Factoring in the stronger sales performance in July, the company now projects sales volumes for third-quarter 2020 to be down 6-11% year over year, excluding foreign currency translation, It earlier expected a year-over-year decline of 8-15%.
Additionally, the company now expects third-quarter operating margin decrements to be between 10% and 15%, which is better than roughly 25% experienced in the second quarter of 2020. The better margin decrements are on account of healthy operating margin leverage from higher-than-expected sales volumes coupled with sustained strong cost management.
Per PPG management, the company’s sales for July increased sequentially on account of improving demand trends in China and Europe businesses throughout a range of coating end-use markets and in global industrial production. However, sales were down 7% year over year.
Shares of the company have gained 6.9% in the past year compared with 2.2% growth of the industry.
On its second-quarter earnings call, it expected to achieve restructuring savings of $60-$70 million in the second half of 2020.
Moreover, it anticipates corporate expenses of $50-$55 million and net interest expenses of $32-$36 million for the third quarter.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Equinox Gold Corp. (EQX - Free Report) , Eldorado Gold Corporation (EGO - Free Report) andRoyal Gold, Inc. (RGLD - Free Report) .
Eldorado Gold has a projected earnings growth rate of 2225% for the current year. The company’s shares have gained around 44% in a year. It currently has a Zacks Rank #2.
Royal Gold has an expected earnings growth rate of 62.1% for 2020. The company’s shares have gained 7.4% in the past year.It is presently a Zacks #2 Ranked player.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Image: Bigstock
PPG Industries Issues July Sales Update, Raises Q3 Estimates
PPG Industries Inc. (PPG - Free Report) announced that total net sales for July surpassed its original estimates, reflecting a continuation of the strong demand recovery experienced in June.
Factoring in the stronger sales performance in July, the company now projects sales volumes for third-quarter 2020 to be down 6-11% year over year, excluding foreign currency translation, It earlier expected a year-over-year decline of 8-15%.
Additionally, the company now expects third-quarter operating margin decrements to be between 10% and 15%, which is better than roughly 25% experienced in the second quarter of 2020. The better margin decrements are on account of healthy operating margin leverage from higher-than-expected sales volumes coupled with sustained strong cost management.
Per PPG management, the company’s sales for July increased sequentially on account of improving demand trends in China and Europe businesses throughout a range of coating end-use markets and in global industrial production. However, sales were down 7% year over year.
Shares of the company have gained 6.9% in the past year compared with 2.2% growth of the industry.
On its second-quarter earnings call, it expected to achieve restructuring savings of $60-$70 million in the second half of 2020.
Moreover, it anticipates corporate expenses of $50-$55 million and net interest expenses of $32-$36 million for the third quarter.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Equinox Gold Corp. (EQX - Free Report) , Eldorado Gold Corporation (EGO - Free Report) andRoyal Gold, Inc. (RGLD - Free Report) .
Equinox Gold has a projected earnings growth rate of 255.2% for the current year. The stock has rallied around 111% in a year. It currently has a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Eldorado Gold has a projected earnings growth rate of 2225% for the current year. The company’s shares have gained around 44% in a year. It currently has a Zacks Rank #2.
Royal Gold has an expected earnings growth rate of 62.1% for 2020. The company’s shares have gained 7.4% in the past year.It is presently a Zacks #2 Ranked player.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>