Are You Expecting This From PPG Industries?

Seth Jayson, The Motley Fool
Updated

PPG Industries (NYSE: PPG) is expected to report Q2 earnings on July 19. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict PPG Industries' revenues will improve 4.3% and EPS will grow 10.8%.

The average estimate for revenue is $4.16 billion. On the bottom line, the average EPS estimate is $2.35.

Revenue details
Last quarter, PPG Industries reported revenue of $3.75 billion. GAAP reported sales were 6.2% higher than the prior-year quarter's $3.53 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $1.81. GAAP EPS of $0.08 for Q1 were 94% lower than the prior-year quarter's $1.40 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 40.8%, 100 basis points better than the prior-year quarter. Operating margin was 12.0%, 100 basis points better than the prior-year quarter. Net margin was 0.3%, 620 basis points worse than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $15.65 billion. The average EPS estimate is $7.99.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 353 members rating the stock outperform, and 26 members rating it underperform. Among 104 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 102 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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