PPG Industries announces Q3 2018 earnings
PPG Industries (PPG) announced its third-quarter earnings today before the market opened. PPG Industries reported adjusted EPS of $1.45, a decline of 4.6% on a year-over-year basis. However, PPG Industries managed to meet Wall Street expectations of $1.45 per share. Higher revenue growth and share repurchases helped PPG to meet Wall Street expectations.
PPG Industries’ revenues for the quarter also met Wall Street expectations. The company reported revenues of $3.82 billion, which implies ~1.1% growth compared to revenues of $3.78 billion in the third quarter of 2017. Analysts expected PPG Industries to post revenues of $3.82 billion. PPG’s revenue growth was mainly driven by a higher selling price, which reflects PPG’s decision to increase product prices due to an increase in raw material prices. However, the weaker demand in some of its business units had an adverse impact on volumes. Further, the unfavorable foreign currency due to the strong dollar also had a negative impact on PPG’s revenue growth.
- PPG Industries purchased $250 million worth of outstanding shares during the quarter. Total repurchases for the first three quarters of 2018 now stand at $1.3 billion.
- In the fourth quarter, PPG intends to spend $1.0 billion towards acquisitions and share repurchases.
- Fourth-quarter EPS guidance was in the range of $1.03 to $1.13.
Stock price reaction
At the time of this writing, PPG Industries stock was trading 1.1% higher than the previous day’s close. Sherwin-Williams (SHW) and Axalta (AXTA) were down by 0.4% and 0.05%, respectively, while RPM International (RPM) was up by 0.3%.
Investors looking for indirect exposure to PPG Industries can invest in the Materials Select Sector SPDR ETF (XLB). XLB has invested 4.1% of its portfolio in PPG Industries.
Stay tuned for the detailed Q3 2018 earnings report.