PPG Industries (NYSE:PPG), a paints and coatings manufacturer, announced mixed Q1-2024 results, sending shares slightly lower after hours. The company posted adjusted earnings of $441 million, equivalent to $1.86 per share (up 2% year-over-year), aligning with Wall Street’s forecasts. Despite achieving these results, PPG’s revenue fell by 2%, totaling $4.31 billion. Estimates called for $4.43 billion in revenue. This drop was largely due to decreased sales volumes in both Performance Coatings and Industrial Coatings, influenced by reduced demand across several global markets, particularly in Europe.
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Importantly, PPG announced a $2.5 billion buyback program on top of its previous program, which had $860 million remaining as of March 31. In Q1, the company bought back $150 million worth of shares. Looking ahead, PPG is optimistic about its financial trajectory for the rest of 2024, maintaining a forecast for adjusted earnings between $8.34 and $8.59 per share with expected low single-digit organic sales growth.
PPG’s management expressed confidence bolstered by strong performances in Mexico, China, and India, which are anticipated to mitigate challenges in Europe and other sectors.
Is PPG Stock a Buy, According to Analysts?
On TipRanks, PPG comes in as a Moderate Buy based on six Buys, eight Holds, and no Sell ratings assigned in the past three months. The average PPG stock price target of $158.87 implies 17.6% upside potential.
