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PPG Industries (NYSE:), on Thursday, reported an increased Q3 2023 profit of $426 million or $1.79 per share, up from $329 million or $1.39 per share in Q3 2022. The company’s adjusted earnings per share rose to $2.07, surpassing the Zacks Consensus Estimate of $1.95. This positive trend aligns with InvestingPro Tips, which predicts that the company will be profitable this year.
The company’s revenues saw a year-over-year increase of 4% to $4,644 million, fueled by higher selling prices. The Performance Coatings segment played a significant role in this growth with revenues rising 6% to $2,880 million, exceeding estimates. Meanwhile, the Industrial Coatings segment maintained steady revenues at $1,764 million. According to InvestingPro Data, the company’s recent revenue growth rate was 1.96% and its quarterly revenue growth was 3.86%.
PPG Industries ended Q3 with a healthy balance sheet holding $1.3 billion in cash and short-term investments, alongside a net debt of $4.9 billion. The company’s restructuring efforts and acquisition-related synergies have generated approximately $15 million in incremental cost savings in Q3. InvestingPro Data shows that the company’s market cap stands at 30.09B USD and its P/E ratio is 22.9, indicating a strong financial position.
Looking ahead to Q4, PPG projects total organic sales to fluctuate by a low single-digit percent and adjusted EPS to range between $1.44-$1.50. On the back of its strong performance, the company has raised its full-year adjusted EPS projection to the band of $7.58-$7.64. This is in line with InvestingPro Tips, which notes that PPG has raised its dividend for 52 consecutive years, underscoring its commitment to shareholder returns.
Over the past year, PPG’s shares have risen 17.9%, outpacing the industry’s growth of 17.5%. According to InvestingPro Data, the company’s one-year price total return was 13.61%, and its fair value is 134.27 USD. Currently, PPG carries a Zacks Rank #3 (Hold). Other stocks performing well in the sector include Equinox Gold (NYSE:) Corp., with a projected earnings growth rate of 90% and stock up around 40.8% in a year; Koppers Holdings (NYSE:) Inc., with a projected growth rate of 7.5% and stock up around 65.4% in a year. For more insights like these, check out InvestingPro which offers numerous additional tips.
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