PPG Industries' (PPG) Earnings & Sales Beat Estimates in Q3

PPG Industries Inc. PPG reported net income from continuing operations of $442 million or $1.86 per share in third-quarter 2020, up from the year-ago quarter’s profit of $366 million or $1.54 per share.

Barring one-time items, adjusted earnings were $1.93 per share in the reported quarter, up 15.6% from $1.67 logged in the year-ago quarter. The figure also topped the Zacks Consensus Estimate of $1.92.

Net sales declined 3.7% year over year to $3,685 million. However, the figure surpassed the Zacks Consensus Estimate of $3,608.7 million. Sales volumes were down around 5% year over year, reflecting the impacts of the coronavirus pandemic.

PPG Industries, Inc. Price, Consensus and EPS Surprise

PPG Industries, Inc. Price, Consensus and EPS Surprise

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

Segment Highlights

Performance Coatings: Net sales in the segment amounted to around $2.3 billion in the third quarter, down 3% year over year. Sales volume in the segment declined around 5% mainly due to the impacts of the coronavirus pandemic.  

Segment income rose 12% year over year to $426 million. The upside was backed by higher selling prices, restructuring initiatives and cost-mitigation efforts, which were partly offset by reduced sales volumes due to the pandemic.

Industrial Coatings: Sales in the segment totaled around $1.4 billion, down around 5% from the prior-year quarter’s figure. Sales volumes fell 5% year over year due to decline in global economic demand resulting from the pandemic.

Net income in the segment totaled $253 million, up around 23% year over year. Results gained from the company’s restructuring cost savings, aggressive cost-mitigation actions and higher selling prices, which were partly offset by lower sales volumes.

Financial Position

As of Sep 30, 2020, PPG Industries had cash and cash equivalents of $2,008 million, up 34.8% year over year. Long-term debt fell 1.2% year over year to $4,828 million.


Going forward, the company expects to achieve restructuring savings of $30-$35 million in the fourth quarter of 2020.

PPG Industries also expects total sales volume for the fourth quarter to be down a low-to-mid-single digit percentage, differing by region and business.

Moreover, it anticipates corporate expenses of $55-$60 million and net interest expenses of $28-$30 million for the fourth quarter.

Price Performance

Shares of the company have gained 7.7% in the past year compared with 7.5% rise of the industry.

Zacks Rank & Other Key Picks

PPG Industries currently carries a Zacks Rank #2 (Buy).

Other top-ranked stocks in the basic materials space are Coeur Mining, Inc. CDE, Agnico Eagle Mines Limited AEM and Barrick Gold Corporation GOLD, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Coeur Mining has an expected earnings growth rate of 156% for 2020. The company’s shares have surged 57.3% in the past year.

Agnico Eagle has an expected earnings growth rate of 104.1% for 2020. Its shares have returned 50% in the past year.

Barrick has an expected earnings growth rate of 148% for 2020. The company’s shares have gained 60.9% in the past year.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PPG Industries, Inc. (PPG): Free Stock Analysis Report
Barrick Gold Corporation (GOLD): Free Stock Analysis Report
Coeur Mining, Inc. (CDE): Free Stock Analysis Report
Agnico Eagle Mines Limited (AEM): Free Stock Analysis Report
To read this article on click here.
Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics


Latest Markets Videos


    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

    Learn More