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The company surpassed the Zacks Consensus Estimate for earnings in three of the last four quarters while missing it once. It delivered a trailing four-quarter earnings surprise of around 6.8% on average. It pulled off an earnings surprise of 17.4% in the last reported quarter.
The stock has gained 26.2% over the past year compared with an 14.9% rise recorded by its industry.
Image Source: Zacks Investment Research
What Do the Estimates Say?
The Zacks Consensus Estimate for sales for the to-be-reported quarter is currently pegged at $4,902 million, which implies a rise of 4.5% from the year-ago reported number.
The Zacks Consensus Estimate for net sales for PPG’s Industrial Coatings segment is pegged at $1,798.6 million, which indicates a year-over-year rise of 2.5%.
Also, the consensus estimate for net sales for PPG’s Performance Coatings segment stands at $3,104.2 million, which suggests an increase of 4%. Our estimate for the quarter for the segment is $3,046.2 million.
Factors to Watch
In the second quarter, PPG Industries is likely to have gained from cost savings from restructuring actions, synergies of acquisitions and pricing initiatives. The company is implementing a cost-cutting and restructuring strategy to reduce costs and optimize working capital needs. PPG's financial performance is expected to have benefited from these restructuring actions, with incremental restructuring savings of $10–$15 million projected in the second quarter of 2023.
Additionally, PPG has been actively raising selling prices across all of its business areas to offset the effects of cost inflation in raw materials, energy and logistics. Its profitability is anticipated to have been driven by this strategic strategy, greater manufacturing efficiency, and cost discipline in the quarter.
PPG is also actively pursuing inorganic growth through value-creating acquisitions. Acquisitions such as Tikkurila, Worwag and Cetelon are likely to have contributed to the company's top line in the June quarter.
Our proven model predicts an earnings beat for PPG Industries this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat. That is the case here.
Earnings Beat: Earnings ESP for PPG Industries is +2.57%. This is because the Most Accurate Estimate is currently pegged at $2.20 while the Zacks Consensus Estimate stands at $2.14. 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 Zacks Rank #1.
Other Stocks That Warrant a Look
Here are some other companies in the basic materials space you may want to consider, as our model shows these too have the right combination of elements to post earnings beat this quarter:
The consensus estimate for AEM’s earnings for the second quarter is currently pegged at 54 cents.
Axalta Coating Systems Ltd. (AXTA - Free Report) , which is expected to release its earnings on Jul 25, has an Earnings ESP of +6.02%.
The consensus estimate for AXTA’s earnings for the second quarter is currently pegged at 39 cents. It currently carries a Zacks Rank #2.
Kinross Gold Corporation (KGC - Free Report) , which is scheduled to release earnings on Aug 2, has an Earnings ESP of +5.56% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for earnings for KGC for the second quarter is pegged at 9 cents.
Image: Bigstock
PPG Industries (PPG) to Post Q2 Earnings: What's in Store?
PPG Industries, Inc. (PPG - Free Report) is scheduled to report second-quarter 2023 results after the closing bell on Jul 20.
The company surpassed the Zacks Consensus Estimate for earnings in three of the last four quarters while missing it once. It delivered a trailing four-quarter earnings surprise of around 6.8% on average. It pulled off an earnings surprise of 17.4% in the last reported quarter.
The stock has gained 26.2% over the past year compared with an 14.9% rise recorded by its industry.
Image Source: Zacks Investment Research
What Do the Estimates Say?
The Zacks Consensus Estimate for sales for the to-be-reported quarter is currently pegged at $4,902 million, which implies a rise of 4.5% from the year-ago reported number.
The Zacks Consensus Estimate for net sales for PPG’s Industrial Coatings segment is pegged at $1,798.6 million, which indicates a year-over-year rise of 2.5%.
Also, the consensus estimate for net sales for PPG’s Performance Coatings segment stands at $3,104.2 million, which suggests an increase of 4%. Our estimate for the quarter for the segment is $3,046.2 million.
Factors to Watch
In the second quarter, PPG Industries is likely to have gained from cost savings from restructuring actions, synergies of acquisitions and pricing initiatives. The company is implementing a cost-cutting and restructuring strategy to reduce costs and optimize working capital needs. PPG's financial performance is expected to have benefited from these restructuring actions, with incremental restructuring savings of $10–$15 million projected in the second quarter of 2023.
Additionally, PPG has been actively raising selling prices across all of its business areas to offset the effects of cost inflation in raw materials, energy and logistics. Its profitability is anticipated to have been driven by this strategic strategy, greater manufacturing efficiency, and cost discipline in the quarter.
PPG is also actively pursuing inorganic growth through value-creating acquisitions. Acquisitions such as Tikkurila, Worwag and Cetelon are likely to have contributed to the company's top line in the June quarter.
PPG Industries, Inc. Price and EPS Surprise
PPG Industries, Inc. price-eps-surprise | PPG Industries, Inc. Quote
Zacks Model
Our proven model predicts an earnings beat for PPG Industries this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat. That is the case here.
Earnings Beat: Earnings ESP for PPG Industries is +2.57%. This is because the Most Accurate Estimate is currently pegged at $2.20 while the Zacks Consensus Estimate stands at $2.14. 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 Zacks Rank #1.
Other Stocks That Warrant a Look
Here are some other companies in the basic materials space you may want to consider, as our model shows these too have the right combination of elements to post earnings beat this quarter:
Agnico Eagle Mines Limited (AEM - Free Report) , which is scheduled to release earnings on Jul 26, has an Earnings ESP of +3.98% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for AEM’s earnings for the second quarter is currently pegged at 54 cents.
Axalta Coating Systems Ltd. (AXTA - Free Report) , which is expected to release its earnings on Jul 25, has an Earnings ESP of +6.02%.
The consensus estimate for AXTA’s earnings for the second quarter is currently pegged at 39 cents. It currently carries a Zacks Rank #2.
Kinross Gold Corporation (KGC - Free Report) , which is scheduled to release earnings on Aug 2, has an Earnings ESP of +5.56% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for earnings for KGC for the second quarter is pegged at 9 cents.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.