The 10-second takeaway
For the quarter ended Dec. 31 (Q4), PPG Industries beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded.
Margins grew across the board.
PPG Industries booked revenue of $3.65 billion. The 14 analysts polled by S&P Capital IQ anticipated net sales of $3.59 billion on the same basis. GAAP reported sales were 3.7% higher than the prior-year quarter's $3.52 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 $1.53. The 20 earnings estimates compiled by S&P Capital IQ averaged $1.53 per share. GAAP EPS of $1.46 for Q4 were 5.8% higher than the prior-year quarter's $1.38 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 39.7%, 180 basis points better than the prior-year quarter. Operating margin was 10.0%, 120 basis points better than the prior-year quarter. Net margin was 6.2%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $3.48 billion. On the bottom line, the average EPS estimate is $1.69.
Next year's average estimate for revenue is $14.81 billion. The average EPS estimate is $7.77.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 362 members out of 391 rating the stock outperform, and 29 members rating it underperform. Among 127 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 122 give PPG Industries a green thumbs-up, and five 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 $137.35.
Looking for alternatives to PPG Industries? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add PPG Industries to My Watchlist.
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. TMFDisclosureHere