PPG Industries Misses Earnings and Sales Estimates in Q4

PPG Industries, Inc. PPG reported fourth-quarter 2024 adjusted earnings per share (EPS) of $1.61, which increased from $1.56 in the year-ago quarter. The figure missed the Zacks Consensus Estimate of $1.65.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The company’s revenues were $3,729 million in the quarter, down around 5% year over year. The top line missed the Zacks Consensus Estimate of $4,005.5 million.Organic sales fell by a low single-digit percentage year over year in the fourth quarter, with growth in Mexico, China and India, as well as growth in the aerospace, protective and marine, and traffic solutions businesses, offsetting declines in the automotive original equipment manufacturer (OEM), industrial and architectural EMEA coatings businesses. Despite reduced organic sales, adjusted EPS and total segment EBITDA margins increased due to sales of technology-advantaged products, moderated input costs and structural cost initiatives.PPG Industries, Inc. Price, Consensus and EPS Surprise PPG Industries, Inc. price-consensus-eps-surprise-chart | PPG Industries, Inc. QuotePPG’s Segment ReviewIn the fourth quarter, the Performance Coatings segment’s revenues were $1,262 million, up 2%. Aerospace coatings, protective and marine coatings, and traffic solutions drove the 1% year-over-year gain in sales volumes. The business recorded double-digit organic sales growth in the quarter, reflecting the further strengthening of the demand for PPG’s technology in this end-use industry. PPG's aerospace order backlog grew to around $300 million. Reduced industry collision claims more than offset a low single-digit percentage drop in organic sales of automobile refinish coatings.Within the Industrial Coatings segment, revenues saw a 9% year-over-year decrease to $1,586 million. The metric missed our estimate of $1,627.4 million. Lower sales volumes and lower selling prices from specific index-based client contracts are the main causes of the fall. Organic sales of automotive OEM coatings fell by a high single-digit percentage as a result of slower industry build rates in the United States and Europe, which were somewhat offset by growth in China and Mexico. The downward trend in industrial production persisted in both Europe and the United States. Sales from the Global Architectural Coatings segment, which was earlier reported as part of the Performance Coatings segment, were $881 million, down 7% year over year, mainly due to unfavorable foreign currency swings. PPG’s FY24 ResultsAdjusted EPS for full-year 2024 was $7.87 per share compared with $7.42 a year ago. Net sales decreased 2% year over year to $15,845 million.PPG’s FinancialsAt the end of the fourth quarter, the company had around $1.4 billion in cash and short-term investments. Net debt was $4.5 billion, down roughly $30 million from the prior-year quarter’s figure.PPG’s OutlookPPG expects adjusted EPS for 2025 to be between $7.75 and $8.05, suggesting a 7% increase at the midpoint, excluding the impact of foreign currency translation and a higher tax rate. The outlook is based on current global economic activity and foreign exchange rates, continued lackluster global industrial production and mixed demand throughout the geographies in which PPG operates. PPG anticipates that annual EPS growth will be concentrated in the second half of 2025, as global industrial demand softened and the U.S. dollar gained in the second half of 2024. Moreover, the company plans to deliver more than $100 million in annualized share gains in its Industrial Coatings segment beginning in the second half of this year.PPG’s Stock Price PerformancePPG Industries’ shares have lost 13.2% in the past year compared with the industry’s decline of 15.4% over the same period.Image Source: Zacks Investment ResearchPPG’s Zacks Rank & Key PicksPPG currently carries a Zacks Rank #4 (Sell).Better-ranked stocks worth a look in the basic materials space include ICL Group Ltd.  ICL, Hecla Mining Company HL and Ingevity Corporation NGVT.ICL is slated to report fourth-quarter results on Feb. 26. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 6 cents. ICL beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 18.1%. ICL carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Hecla Mining is expected to report fourth-quarter results on Feb. 12. The Zacks Consensus Estimate for HL’s fourth-quarter earnings is pegged at 4 cents. HL beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 50%. HL currently carries a Zacks Rank #1.Ingevity is slated to report fourth-quarter results on Feb. 18, after market close. The consensus estimate for Ingevity’s fourth-quarter earnings is pegged at 12 cents. NGVT, carrying a Zacks Rank #1, beat the consensus estimate in three of the last four quarters while missing once, with the average earnings surprise being 95.4%.  Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PPG Industries, Inc. (PPG): Free Stock Analysis Report Hecla Mining Company (HL): Free Stock Analysis Report ICL Group Ltd. (ICL): Free Stock Analysis Report Ingevity Corporation (NGVT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks