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PPG Industries (PPG) to Post Q1 Earnings: What's in the Cards?
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PPG Industries Inc. (PPG - Free Report) is set to release first-quarter 2021 results after the closing bell on Apr 15. The paint giant’s results will likely reflect the benefits of improved coatings demand and its aggressive cost-cutting and restructuring actions.
PPG Industries’ earnings beat the Zacks Consensus Estimate in three of the last four quarters, while missed once. It has a trailing four-quarter earnings surprise of roughly 13.3%, on average. The company posted an earnings surprise of around 1.3% in the last reported quarter.
Shares of the company have gained 60.6% in the past year compared with 67.3% 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 first quarter to be $1.55-$1.61 per share. It also expects total sales volume for the first quarter to be flat to modestly higher, differing by business and region, factoring in economic uncertainties associated with the pandemic.
The Zacks Consensus Estimate for revenues for PPG Industries for the to-be-reported quarter is at $3,692 million, suggesting a year-over-year rise of 9.3%.
The Zacks Consensus Estimate for revenues for the company’s Industrial Coatings unit is currently pegged at $1,549 million, calling for an increase of around 13.1% year over year. The consensus mark for revenues in the Performance Coatings segment is pegged at $2,201 million, indicating a roughly 9.6% year-over-year rise.
Factors at Play
The company’s first-quarter performance is expected to have benefited from cost-cutting and restructuring measures. PPG Industries announced significant restructuring actions mainly focused on regions and end-use markets with the weakest business conditions. It expects roughly $35 million in cost savings from its restructuring programs in the first 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 first quarter.
Moreover, improved global coatings demand across the company’s end-markets on the back of strengthening economic activities are likely to have supported its top line in the first quarter. Momentum is likely to have continued in automotive OEM, general industrial and packaging coatings businesses. The company is also expected to have witnessed continued strength in its global architectural coatings business. Higher selling prices are also likely to have aided sales and margins in the Performance Coatings unit.
However, reduced customer builds and lower miles flown globally are likely to have hurt sales volumes in aerospace in the first quarter. Moreover, volumes in automotive refinish are likely to have remained under pressure in the United States and Europe in the quarter to be reported due to lower miles driven.
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 for the first quarter is currently pegged at $1.58. 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 #4 (Sell).
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:
Celanese Corporation (CE - Free Report) , scheduled to release earnings on Apr 22, has an Earnings ESP of +2.53% and carries a Zacks Rank #2.
Eastman Chemical Company (EMN - Free Report) , scheduled to release earnings on Apr 29, has an Earnings ESP of +0.74% and carries a Zacks Rank #3.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Bigstock
PPG Industries (PPG) to Post Q1 Earnings: What's in the Cards?
PPG Industries Inc. (PPG - Free Report) is set to release first-quarter 2021 results after the closing bell on Apr 15. The paint giant’s results will likely reflect the benefits of improved coatings demand and its aggressive cost-cutting and restructuring actions.
PPG Industries’ earnings beat the Zacks Consensus Estimate in three of the last four quarters, while missed once. It has a trailing four-quarter earnings surprise of roughly 13.3%, on average. The company posted an earnings surprise of around 1.3% in the last reported quarter.
Shares of the company have gained 60.6% in the past year compared with 67.3% 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 first quarter to be $1.55-$1.61 per share. It also expects total sales volume for the first quarter to be flat to modestly higher, differing by business and region, factoring in economic uncertainties associated with the pandemic.
The Zacks Consensus Estimate for revenues for PPG Industries for the to-be-reported quarter is at $3,692 million, suggesting a year-over-year rise of 9.3%.
The Zacks Consensus Estimate for revenues for the company’s Industrial Coatings unit is currently pegged at $1,549 million, calling for an increase of around 13.1% year over year. The consensus mark for revenues in the Performance Coatings segment is pegged at $2,201 million, indicating a roughly 9.6% year-over-year rise.
Factors at Play
The company’s first-quarter performance is expected to have benefited from cost-cutting and restructuring measures. PPG Industries announced significant restructuring actions mainly focused on regions and end-use markets with the weakest business conditions. It expects roughly $35 million in cost savings from its restructuring programs in the first 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 first quarter.
Moreover, improved global coatings demand across the company’s end-markets on the back of strengthening economic activities are likely to have supported its top line in the first quarter. Momentum is likely to have continued in automotive OEM, general industrial and packaging coatings businesses. The company is also expected to have witnessed continued strength in its global architectural coatings business. Higher selling prices are also likely to have aided sales and margins in the Performance Coatings unit.
However, reduced customer builds and lower miles flown globally are likely to have hurt sales volumes in aerospace in the first quarter. Moreover, volumes in automotive refinish are likely to have remained under pressure in the United States and Europe in the quarter to be reported due to lower miles driven.
PPG Industries, Inc. Price and EPS Surprise
PPG Industries, Inc. price-eps-surprise | PPG Industries, Inc. Quote
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 for the first quarter is currently pegged at $1.58. 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 #4 (Sell).
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:
Dow Inc. (DOW - Free Report) , scheduled to release earnings on Apr 22, has an Earnings ESP of +6.56% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Celanese Corporation (CE - Free Report) , scheduled to release earnings on Apr 22, has an Earnings ESP of +2.53% and carries a Zacks Rank #2.
Eastman Chemical Company (EMN - Free Report) , scheduled to release earnings on Apr 29, has an Earnings ESP of +0.74% and carries a Zacks Rank #3.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>