NYSE:PPGChemicals
PPG Industries (PPG) Stock Falls As Margin Pressure Undercuts Growth
PPG Industries went into this earnings print as a value story in coatings, trading on a mid teens P/E and sitting below some intrinsic value estimates. The stock still dropped about 6% on the day to US$111.83. That move reflects how sharply investors reacted to the quality of this quarter’s profits, not just the headline revenue growth.
The key issue this time is margin pressure. Adjusted earnings per share of US$2.23 were supported by an adjusted EBITDA margin only just above 17%. For a...