By Ben Glickman
PPG Industries is set to report its third-quarter earnings after the market closes Wednesday. Here’s what you need to know.
NET INCOME: The paint and coatings company is expected to post a profit of $442.2 million, compared with $329 million a year earlier, according to the consensus of seven analysts polled by FactSet.
REVENUE: PPG’s revenue is expected to rise to $4.64 billion from $4.47 billion a year ago, according to the estimates of 15 analysts polled by FactSet.
ADJUSTED EARNINGS: The company is expected to post adjusted earnings of $1.94 a share, compared with prior guidance of $1.85 to $1.95 a share.
WHAT TO WATCH
RAW MATERIALS: Raw material costs, an important part of the company’s margins, have returned to pre-pandemic availability, management said after second-quarter results. Analysts and investors will be looking for signs that raw material costs are continuing to decline.
HOME SALES: The company’s business is highly linked to home sales, and PPG has warned that rising mortgage rats and slumping home sales could dent its domestic business.
INTERNATIONAL: PPG has faced a slow recovery in its international markets, specifically in China. Last quarter the company said it expected “modest sequential demand improvement” in China and more stable European demand going forward, but investors will be looking for signs that trend has materialized.
Write to Ben Glickman at [email protected]
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