Here's Why Shares in PPG Outperformed Today
Shares in paints and coatings company PPG (NYSE: PPG) rose by as much as 6.1% in early trading today as investors cheered its first-quarter earnings report and full-year guidance. Given the pressure on the economy due to the uncertainty around tariffs, any company that merely restates its full-year guidance must be looked at positively.
Management reiterated guidance for adjusted earnings per share (EPS) of $7.75-$8.05, as an improvement in its performance coatings segment is more than offsetting weakness in other segments.
Looking at its sales momentum across PPG's segments is a great way to get a handle on trends in the economy. On the positive side, in performance coatings (volumes up 6% in the quarter), the aerospace sector and automotive refinish (a market that tends to be less cyclical, as it's driven by crashes and repair work) indicate areas of strength in the economy.
Source Fool.com
