PPG - PPG edges higher after Q1 beat upside Q2 and full-year guidance
2023-04-21 15:13:46 ET
PPG ( NYSE: PPG ) +0.5% in Friday's trading after posting better than expected Q1 adjusted earnings and a quarterly record $4.4B in net sales, while guiding Q2 and full-year earnings above Wall Street consensus.
Q1 net income soared to $264M, or $1.11/share, from just $18M, or $0.08/share, in the year-ago quarter, and operating margins jumped by 380 bps over the prior-year period.
Q1 sales of performance coatings rose 2% Y/Y to $2.63B, and industrial coatings edged up 1% to $1.75B, as higher selling prices in all businesses more than offset lower sales volumes; the aerospace coatings business and the Latin America region each delivering record sales in the quarter.
For Q2, PPG ( PPG ) guided for adjusted earnings of $2.05-$2.15/share, above $1.96 analyst consensus estimate.
For the full year, the company forecasts EPS of $6.95-$7.25, above $6.86 consensus; the midpoint projects 10% Y/Y earnings growth in H2 2023.
The company anticipates the Q2 macroenvironment generally remaining consistent with Q1, with continued stabilization of economic activity (at lower absolute levels) in Europe, modestly improving demand in China, and sequential slowing in economic activity in certain U.S. end-use markets, particularly those that are construction-related.
PPG's ( PPG ) stock price return shows gains of 12% YTD and 7% during the past year .
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PPG edges higher after Q1 beat, upside Q2 and full-year guidance