Shares of PPG Industries (NYSE: PPG) ticked lower on Monday after the supplier of paints, coatings, and specialty materials gave a disappointing fiscal Q3 update.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
The company stated that it expects Q3 adjusted earnings to be lower by 5% to 7% below the low end of the company’s forecasted range of $1.75 to $2.00 per share. PPG cited softening demand in Europe and China as the reason for the lower-than-expected earnings.
PPG added that its sales volumes fell more steeply in September and resulted in a “reduction in the earnings benefit from higher selling prices and reduced manufacturing efficiencies versus the prior forecast.”
PPG also pointed out that it anticipates lowered demand to persist in Q4 as well as higher raw material prices. PPG expects “selling prices to be up by between 10% and 12% compared to the prior-year fourth quarter, and up between 18% and 20% on a two-year stacked basis.”
Is PPG a Good Stock to Buy?
Wall Street analysts are cautiously optimistic about PPG, with a Moderate Buy consensus rating based on nine Buys, five Holds, and one Sell.
The average price forecast for PPG stock is $142.14, implying upside potential of 29.6% at current levels.
