Why PPG Industries Shares Are Popping After Hours

PPG Industries Inc PPG shares are trading higher in Thursday's after-hours session after the company reported strong earnings results driven by accelerating operating margins.

  • Q1 Revenue: $4.38 billion missed estimates of $4.39 billion
  • Q1 EPS: $1.82 beat estimates of $1.51

Operating cash flow increased by about $400 million year-over-year. The company said supply disruptions are moderating and manufacturing operations are improving. 

"The pace of our operating margin recovery accelerated during the quarter, which drove a 33% year-over-year increase in adjusted EPS," said Tim Knavish, president and CEO of PPG.

"Our improving results are despite macroeconomic conditions that remain challenging and reflect the strengths of our diverse business portfolio and progress we are making on restoring margins in line with our historical profile."

PPG sees aggregate sales volumes remaining flat in the second quarter. The company anticipates second-quarter adjusted earnings of $2.05 to $2.15 per share.

Full-year earnings are expected to be in the range of $6.95 to $7.25 per share. 

A conference call to discuss these results will kick off at 4:30 p.m. ET.

See Also: Why CSX Stock Is Moving Higher After Hours

PPG Price Action: PPG shares were up 0.52% after hours at $142.20 at the time of writing, according to Benzinga Pro.

Photo: Ferenc Keresi from Pixabay.

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