Coatings maker Axalta Q3 sales miss on lower volumes
Overview
Coatings maker's Q3 net sales rose 2% yr/yr, missing analyst expectations
Adjusted diluted EPS for Q3 fell 6% yr/yr and missed analyst expectations
Lower volumes in Performance Coatings and higher costs weighed on quarterly results
Outlook
Axalta sees Q4 adjusted EBITDA of $254 mln to $264 mln
Company expects full-year adjusted EBITDA of $1.1 bln to $1.11 bln
Axalta expects FY 2026 net sales growth in the low single digits
Result Drivers
REGIONAL VOLUME VARIATION - Co said net sales growth was driven by volume increases in most regions, but offset by declines in Europe
PERFORMANCE COATINGS PRESSURE - Lower volumes and higher raw material and freight costs weighed on Performance Coatings results
MOBILITY COATINGS GROWTH - Record Mobility Coatings sales driven by higher volumes, especially in North American commercial vehicles
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Miss | $1.31 bln | $1.33 bln (15 Analysts) |
Q3 Adjusted EPS | Miss | $0.63 | $0.70 (17 Analysts) |
Q3 EPS | $0.44 |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 11 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the commodity chemicals peer group is "buy"
Wall Street's median 12-month price target for Axalta Coating Systems Ltd. is $38.50, about 11.1% above its October 28 closing price of $34.64
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)