The 10-second takeaway
For the quarter ended June 30 (Q2), PPG Industries missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share improved.
Margins grew across the board.
PPG Industries logged revenue of $3.96 billion. The 12 analysts polled by S&P Capital IQ wanted to see sales of $4.16 billion on the same basis. GAAP reported sales were 0.8% lower than the prior-year quarter's $3.99 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 $2.36. The 17 earnings estimates compiled by S&P Capital IQ anticipated $2.35 per share. GAAP EPS of $2.34 for Q2 were 10% higher than the prior-year quarter's $2.12 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%, 110 basis points better than the prior-year quarter. Operating margin was 14.0%, 120 basis points better than the prior-year quarter. Net margin was 9.2%, 70 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $4.03 billion. On the bottom line, the average EPS estimate is $2.20.
Next year's average estimate for revenue is $15.60 billion.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 354 members out of 380 rating the stock outperform, and 26 members rating it underperform. Among 102 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 100 give PPG Industries a green thumbs-up, and two 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 $114.33.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.