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PPG Industries Inc (NYSE: PPG) reported its financial results for the fiscal first quarter on Thursday, after the bell, which topped analysts’ estimates for earnings and sales. The company also gave better-than-expected guidance for the fiscal second quarter on Thursday.

PPG Industries jumped close to 4% in after-hours trading on Thursday. Including the price action, the stock is now exchanging hands at £116 per share versus a year-to-date low of £97.45 per share in late February. In comparison, PPG Industries had started the year 2021 at £102.43 per share.

PPG Industries’ Q1 financial results versus analysts’ estimates

PPG Industries said that its net sales in the first quarter printed at £2.81 billion that represents an annualised growth of 15%. Its profit came in at £273.99 million in Q1 that translates to £1.15 per share. In the same quarter last year, its profit was capped at a lower £176.13 million, or 74 pence per share.

On an adjusted basis, the American Fortune 500 company earned £1.36 per share in the recent quarter. According to FactSet, experts had forecast the company to post £1.14 of earnings per share in the first quarter. Their estimate for net sales stood at a lower £2.66 billion.

In separate news on Friday, Daimler said its profit jumped in the first quarter on robust demand for Mercedes-Benz cars in China.

PPG Industries now forecasts its per-share earnings on an adjusted basis to fall in the range of £1.56 to £1.59 in the second quarter. In comparison, analysts are calling for a lower £1.47 of adjusted EPS in Q2. Aggregate sequential net sales, the Pittsburgh-based firm added, are likely to jump by a low-teen percentage, compared to the first quarter.

Chief Executive Michael McGarry’s comments on Thursday

CEO Michael McGarry commented on the financial update on Thursday and said:

“We delivered excellent operating performance in both reportable segments. We achieved these results despite experiencing accelerating raw material, and logistics cost inflation during the quarter, and with demand remaining tepid in the global commercial aerospace and U.S. protective coatings end-use markets. The company’s first quarter segment margins were at multi-year seasonal highs as we benefited from strong leverage on higher year-over-year net sales growth.”

PPG Industries gained more than 10% in the stock market last year. At the time of writing, it is valued at £26.44 billion and has a price to earnings ratio of 34.69.

The post PPG Industries’ net sales climb by 15% in the first quarter appeared first on Invezz.



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