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PITTSBURGH - PPG Industries (NYSE:PPG) reported fourth quarter 2024 financial results that fell short of analyst expectations, sending shares down 5.75% in pre-market trading on Friday.
The paints and coatings maker posted adjusted earnings per share of $1.61, missing the consensus estimate of $1.65. Revenue came in at $3.73 billion, well below analysts’ projections of $4.07 billion.
Net sales declined 5% year-over-year to $3.73 billion, driven by lower sales volumes across several business segments. The company’s Industrial Coatings segment saw a 9% drop in sales to $1.59 billion, while Global Architectural Coatings revenue fell 7% to $881 million.
Despite the top-line weakness, PPG (WA:IBSP) managed to grow adjusted earnings per share by 3% compared to the prior year period, supported by cost control measures and positive pricing.
"Throughout 2024, we demonstrated resilience in a challenging macro environment by growing our adjusted EPS by 6%, improving aggregate segment margins and generating $1.4 billion in operating cash flow which we returned to shareholders," said Tim Knavish, PPG chairman and CEO.
For full-year 2024, PPG reported net sales of $15.85 billion, down 2% from 2023. Adjusted earnings per share rose 6% to $7.87.
Looking ahead, the company expects adjusted EPS for 2025 to be in the range of $7.75 to $8.05, representing 7% growth at the midpoint excluding currency impacts. However, PPG anticipates a "slow start" to 2025 as demand in Europe and global industrial markets remains challenged.
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