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PPG Industries' Q3 Earnings Meet Estimates, Sales Trail

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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. However, PPG Industries faces a number of headwinds, stemming from a sluggish global economy. The company’s earnings are also heavily exposed to unfavorable currency fluctuations.

Let’s have a quick look at this Pittsburgh-based coating giant’s third-quarter 2016 release.

Estimate Trend & Surprise History

Investors should note that the earnings estimate for PPG Industries for the third quarter has seen a downtrend over the last month. PPG Industries has beaten the Zacks Consensus Estimate in 2 out of the 4 trailing quarters with an average beat of 0.33%.

PPG INDS INC Price and EPS Surprise

 

PPG INDS INC Price and EPS Surprise | PPG INDS INC Quote

Earnings

PPG Industries logged adjusted earnings of $1.56 per share for the quarter, up 1.3% year over year. It was in line with the Zacks Consensus Estimate. Adjusted earnings exclude a previously disclosed pension settlement charge.

Revenues

PPG Industries posted third-quarter revenues of $3,789 million, up 1.7% year over year. It trailed the Zacks Consensus Estimate of $3,797 million. Unfavorable currency swings impacted net sales by 2%. Acquisitions contributed over 2% to sales.

Key Stats/Developments to Note

PPG Industries saw its sales volume grow year over year in the quarter in both coatings segments, led by the Industrial Coatings business. Volumes in the Performance Coatings segment also grew with architectural coatings volumes increasing, led by a rise in U.S., Canada and Mexico which was partly offset by lower volumes in Europe, Middle East and Africa. Overall, the quarter was impacted by slower than expected growth in Europe and higher than expected currency headwinds.

Zacks Rank

PPG Industries currently has a Zacks Rank #4 (Sell).

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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