PPG Industries (PPG) Up 0.8% Since Last Earnings Report: Can It Continue?

Core Viewpoint - PPG Industries reported strong earnings and revenue for Q3 2025, surpassing estimates, but there are concerns about future performance due to a downward trend in estimates [3][4][10]. Financial Performance - Q3 2025 profit was $444 million or $1.96 per share, compared to $444 million or $1.90 per share a year ago [3]. - Adjusted earnings per share were $2.13, up from $2.03 year-over-year, exceeding the Zacks Consensus Estimate of $2.09 [3]. - Revenues for the quarter were approximately $4.08 billion, reflecting a 1.2% year-over-year increase and beating the Zacks Consensus Estimate of $4.04 billion [4]. Segment Review - Global Architectural Coatings segment sales rose 1% year-over-year to $1.01 billion, exceeding estimates due to higher selling prices and favorable foreign currency translation, despite a divestiture in Russia [5]. - Performance Coatings segment sales increased 3% year-over-year to $1.41 billion, but missed estimates, driven by higher selling prices and favorable foreign currency translation, offset by lower sales volumes [6]. - Industrial Coatings segment sales remained flat at around $1.65 billion, missing estimates, impacted by a divestiture and lower pricing [7]. Financial Position - The company had approximately $1.83 billion in cash and cash equivalents at the end of the quarter, with net debt increasing to $5.4 billion, up $228 million from the prior year [8]. Outlook - PPG expects adjusted earnings per share of $7.60 to $7.70 for full-year 2025, driven by share gains and cost initiatives, but anticipates softer demand in certain segments [9]. - There has been a downward trend in consensus estimates, with a shift of -9.01% noted [10]. - The stock has a Zacks Rank 4 (Sell), indicating expectations of below-average returns in the coming months [13].