The 10-second takeaway
For the quarter ended June 30 (Q2), PPG Industries met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share grew. GAAP earnings per share was unchanged.
Gross margins increased, operating margins contracted, net margins dropped.
PPG Industries recorded revenue of $4.10 billion. The 15 analysts polled by S&P Capital IQ foresaw a top line of $4.09 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $2.45. The 21 earnings estimates compiled by S&P Capital IQ predicted $2.36 per share. Non-GAAP EPS of $2.45 for Q2 were 3.8% higher than the prior-year quarter's $2.36 per share. GAAP EPS of $2.35 for Q2 were 0.4% higher than the prior-year quarter's $2.34 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 42.8%, 230 basis points better than the prior-year quarter. Operating margin was 12.8%, 120 basis points worse than the prior-year quarter. Net margin was 8.3%, 90 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.97 billion. On the bottom line, the average EPS estimate is $2.30.
Next year's average estimate for revenue is $15.13 billion. The average EPS estimate is $7.92.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 368 members out of 397 rating the stock outperform, and 29 members rating it underperform. Among 129 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 126 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 $157.78.
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