PPG Industries, Inc. PPG reported a third-quarter 2024 profit of $468 million or $2 per share, up from $426 million or $1.79 per share in the year-ago quarter.

In the reported quarter, excluding one-time items, adjusted earnings per share increased to $2.13 from $2.07 in the year-ago quarter, missing the Zacks Consensus Estimate of $2.15.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The company’s revenues were $4,575 million in the quarter, down roughly 1.5% year over year. The fall was due to soft global industrial production, which affected demand in the Industrial Coatings segment. The top line missed the Zacks Consensus Estimate of $4,652.7 million.

PPG Industries, Inc. Price, Consensus and EPS Surprise

PPG Industries, Inc. price-consensus-eps-surprise-chart | PPG Industries, Inc. Quote

PPG’s Segment Review

The Performance Coatings segment’s third-quarter revenues increased 1.4% year over year to $2,921 million, lagging our estimate of $3,006.7 million. Net revenues increased due to higher sales volumes and selling prices. Segment income climbed 13%, driven by higher sales volumes and prices, partly offset by general cost inflation. 

Revenues in the Industrial Coatings segment were down 6.2% year over year to $1,654 million. Net sales were lower than the year-ago quarter due to a fall in sales volumes and selling prices from some index-based client contracts. The figure was below our estimate of $1,719.9 million. Segment income fell 19% over the previous year due to lower sales volumes and reduced selling prices on certain index-based pricing contracts.

PPG Industries’ Financials

At the end of the third quarter, the company had $1,251 million in cash and cash equivalents, up around 2.7% year over year. Long-term debt was $6,138 million, up from $5,596 million in the prior-year quarter.

PPG’s 2024 Outlook

PPG anticipates flat organic sales and adjusted earnings per share at the bottom end of the $8.15 to $8.30 range for full-year 2024.

PPG’s Price Performance

PPG Industries shares have risen 2% in the past year compared with the industry’s growth of 13.9% over the same period.

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Zacks Rank & Key Picks

PPG currently carries a Zacks Rank #4 (Sell).

Better-ranked stocks worth a look in the basic materials space include IAMGOLD Corporation IAG, Agnico Eagle Mines Limited AEM and Avient Corporation AVNT.

IAMGOLD is slated to report third-quarter results on Nov. 7. The Zacks Consensus Estimate for third-quarter earnings is pegged at 11 cents. IAG beat the Zacks Consensus Estimate in three of the last four quarters, with the average earnings surprise being 200%. IAG carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Agnico Eagle is slated to report third-quarter results on Oct. 30, after market close. The Zacks Consensus Estimate for AEM’s third-quarter earnings is pegged at 96 cents. AEM beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.7%. AEM currently carries a Zacks Rank #1.

Avient is slated to report third-quarter results on Oct. 31, before the opening bell. The consensus estimate for Avient’s third-quarter earnings is pegged at 63 cents. AVNT, carrying a Zacks Rank #2 (Buy), beat the consensus estimate in three of the last four quarters while reporting in-line results on the other occasion, with the average earnings surprise being 6.6%.