Why Is PPG Industries (PPG) Up 5.5% Since Last Earnings Report?

Core Viewpoint - PPG Industries has shown a positive stock performance of approximately 5.5% since its last earnings report, outperforming the S&P 500, raising questions about the sustainability of this trend leading up to the next earnings release [1]. Financial Performance - PPG Industries reported Q2 2025 profit of $450 million, or $1.98 per share, a decrease from $493 million, or $2.09 per share, in the same quarter last year [2]. - Adjusted earnings per share, excluding one-time items, fell to $2.22 from $2.35 year-over-year, meeting the Zacks Consensus Estimate [2]. - Revenues for the quarter were approximately $4.19 billion, down 1% year-over-year, but exceeded the Zacks Consensus Estimate of $4.13 billion [3]. Segment Review - The Global Architectural Coatings segment experienced a 5% year-over-year decline in sales to $1.02 billion, surpassing estimates of $1 billion, primarily due to the divestiture of the architectural coatings business in Russia and lower sales volumes, partially offset by higher selling prices [4]. - The Performance Coatings segment saw a 7% year-over-year increase in sales to $1.51 billion, exceeding estimates of $1.44 billion, driven by a 6% rise in organic sales and increases in selling prices and volume [5]. - The Industrial Coatings segment's sales declined 5% year-over-year to $1.67 billion, surpassing estimates of $1.63 billion, mainly due to the divestiture of the silicas products business in late 2024 [6]. Financial Position - As of the end of the quarter, the company had $1.56 billion in cash and cash equivalents, with net debt increasing to $5.7 billion, up $479 million from the prior year [7]. Outlook - The company maintained its full-year 2025 adjusted earnings per share guidance of $7.75 to $8.05, supported by continued market share gains and internal improvement initiatives, while considering current global economic conditions and varied demand trends [8]. - Recent estimates for the stock have shown a downward trend, indicating a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [12]. Industry Comparison - PPG Industries operates within the Zacks Chemical - Specialty industry, where RPM International, a peer, has gained 6% over the past month, reporting revenues of $2.08 billion for the last quarter, reflecting a year-over-year increase of 3.7% [13].