PPG shares jump premarket after paints maker offers upbeat profit guidance for Q3

/ / News

PPG Industries Inc. shares rose 3.5% in premarket trade Thursday, after the paints maker offer upbeat guidance for third-quarter adjusted earnings, despite tailwinds created by the pandemic. PPG said it now expects adjusted EPS to range from $1.90 to $1.94, up from $1.67 a year ago and well ahead of the $1.44 FactSet consensus. The company expects sales volumes to be down about 5% from a year ago, below the lower end of its guidance range of down 6% to down 11%. “We expect to achieve high-teen percentage operating margins in both reporting segments for the quarter, reflecting improving sales volumes and continued execution of our cost management initiatives,” Chief Executive Michael McGarry said in a statement. In the remaining businesses, “demand trends continue to be mixed due to impacts from the pandemic” he said. PPG will release third-quarter earnings on Oct. 19. Shares have fallen 3.4% in the year through Wednesday, while the S&P 500 has gained 5.8%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.