Why Is PPG Industries (PPG) Down 6% Since Last Earnings Report?

Core Viewpoint - PPG Industries reported mixed financial results for Q3 2024, with earnings per share increasing but revenues missing estimates, leading to a downward trend in stock performance and estimates [2][3][8]. Financial Performance - The company reported a profit of $468 million or $2 per share for Q3 2024, an increase from $426 million or $1.79 per share in the same quarter last year [2]. - Adjusted earnings per share rose to $2.13 from $2.07 year-over-year, but fell short of the Zacks Consensus Estimate of $2.15 [2]. - Revenues for the quarter were approximately $4.57 billion, down about 1.5% year-over-year, missing the Zacks Consensus Estimate of $4.65 billion [3]. Segment Review - The Performance Coatings segment saw revenues increase by 1.4% year-over-year to around $2.92 billion, driven by higher sales volumes and prices, with segment income climbing 13% [4]. - Conversely, the Industrial Coatings segment experienced a 6.2% decline in revenues to roughly $1.65 billion, attributed to lower sales volumes and selling prices, resulting in a 19% drop in segment income [5]. Financial Position - At the end of Q3, PPG Industries had approximately $1.25 billion in cash and cash equivalents, reflecting a 2.7% year-over-year increase [6]. - Long-term debt rose to around $6.14 billion, up from $5.6 billion in the prior-year quarter [6]. Outlook - The company anticipates flat organic sales and adjusted earnings per share at the lower end of the $8.15 to $8.30 range for the full year 2024 [7]. - There has been a downward trend in fresh estimates for the stock over the past month, indicating a negative outlook [8]. Investment Scores - PPG Industries currently holds a Growth Score of B but has a low Momentum Score of D, with an overall VGM Score of B, placing it in the middle 20% for investment strategies [9]. - The stock has a Zacks Rank of 4 (Sell), suggesting expectations of below-average returns in the coming months [9].