PPG Industries Beats on EPS but GAAP Results Lag
PPG Industries (NYS: PPG) reported earnings on April 19. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), PPG Industries met expectations on revenue and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share dropped significantly.
Gross margin expanded, operating margin expanded, and net margin contracted.
PPG Industries booked revenue of $3.75 billion. The nine analysts polled by S&P Capital IQ foresaw revenue of $3.78 billion on the same basis. GAAP reported sales were 6.2% higher than the prior-year quarter's $3.53 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $1.81. The 11 earnings estimates compiled by S&P Capital IQ forecast $1.78 per share on the same basis. GAAP EPS of $0.08 for Q1 were 94% lower than the prior-year quarter's $1.40 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 40.6%, 80 basis points better than the prior-year quarter. Operating margin was 11.8%, 80 basis points better than the prior-year quarter. Net margin was 0.3%, 620 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $4.19 billion. On the bottom line, the average EPS estimate is $2.33.
Next year's average estimate for revenue is $15.67 billion. The average EPS estimate is $7.82.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 338 members out of 363 rating the stock outperform, and 25 members rating it underperform. Among 102 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 100 give PPG Industries a green thumbs-up, and two 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 $96.86.
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At the time this article was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.