Earnings Outlook For PPG Industries

PPG Industries PPG releases its next round of earnings this Monday, July 19. Get the latest predictions in Benzinga's essential guide to the company's Q2 earnings report.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Analysts covering PPG Industries modeled for quarterly EPS of $2.2 on revenue of $4.33 billion. PPG Industries EPS in the same period a year ago totaled $0.99. Revenue was $3.02 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate, earnings would be up 122.22%. Revenue would be up 43.62% from the year-ago period. Here is how the company's reported EPS has compared to analyst estimates in the past:

Stock Performance

Shares of PPG Industries were trading at $171.48 as of July 15. Over the last 52-week period, shares are up 56.32%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. PPG Industries is scheduled to hold the call at 08:00:00 ET and can be accessed here.