PPG beats Q4 estimates as higher prices lessen inflationary pressures
PPG Industries on Thursday reported adjusted EPS of $1.22 for Q4, beating the Wall Street consensus estimate of $1.13.
Net sales for the supplier of paints, coatings and specialty materials were flat with the year-earlier quarter at $4.19 billion, but ahead of analyst estimates of $4.12 billion. Sales advanced 5% in constant currencies because of higher prices for its products, according to PPG.
“This earnings improvement was driven by aggregate selling price increases that totaled 19% on a two-year stacked basis,” Tim Knavish, CEO of PPG, said in a statement, “as we remained focused on mitigating the significant cumulative cost inflation incurred the past two years."
The company estimated adjusted EPS for Q1 2023 will be in the range of $1.10 to $1.20 while sales will slip by a mid-single-digit percentage from a year earlier.
PPG (NYSE:PPG) in the past 12 months has declined 23%, compared with a 14% decline for the Standard & Poor's 500 stock index (SP500).
Seeking Alpha contributor Wolf Report has a Buy rating on PPG (PPG) on its valuation. Columnist The Value Investor rates PPG (PPG) a Hold because of economic uncertainties.