The 10-second takeaway
For the quarter ended Sep. 30 (Q3), PPG Industries missed slightly on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share expanded.
Margins grew across the board.
PPG Industries logged revenue of $3.85 billion. The 13 analysts polled by S&P Capital IQ expected to see net sales of $3.92 billion on the same basis. GAAP reported sales were 0.1% lower than the prior-year quarter's $3.85 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $2.24. The 19 earnings estimates compiled by S&P Capital IQ averaged $2.19 per share. GAAP EPS of $2.18 for Q3 were 11% higher than the prior-year quarter's $1.96 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 40.5%, 160 basis points better than the prior-year quarter. Operating margin was 13.3%, 120 basis points better than the prior-year quarter. Net margin was 8.8%, 70 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $3.63 billion. On the bottom line, the average EPS estimate is $1.58.
Next year's average estimate for revenue is $15.26 billion. The average EPS estimate is $7.94.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 351 members out of 378 rating the stock outperform, and 27 members rating it underperform. Among 114 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 111 give PPG Industries a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PPG Industries is outperform, with an average price target of $124.40.
- Add PPG Industries to My Watchlist.