The 10-second takeaway
For the quarter ended March 31 (Q1), PPG Industries missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share dropped. GAAP earnings per share increased significantly.
Gross margins grew, operating margins shrank, net margins increased.
PPG Industries booked revenue of $3.33 billion. The 13 analysts polled by S&P Capital IQ wanted to see revenue of $3.44 billion on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $3.75 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 $1.58. The 20 earnings estimates compiled by S&P Capital IQ predicted $1.56 per share. Non-GAAP EPS of $1.58 for Q1 were 13% lower than the prior-year quarter's $1.81 per share. GAAP EPS of $16.31 for Q1 were much higher than the prior-year quarter's $0.08 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 41.5%, 70 basis points better than the prior-year quarter. Operating margin was 11.0%, 100 basis points worse than the prior-year quarter. Net margin was 72.4%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $4.08 billion. On the bottom line, the average EPS estimate is $2.31.
Next year's average estimate for revenue is $15.13 billion. The average EPS estimate is $7.88.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 364 members out of 393 rating the stock outperform, and 29 members rating it underperform. Among 132 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 129 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 $149.83.
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