Will PPG's Q1 2025 forecast signal a turnaround after 2024's misses?

PPG's Q1 2025 forecast does not indicate a strong turnaround signal after 2024's misses. Here's why:

1. Earnings Projection: Analysts expect PPG to report a profit of $1.62 per share for Q1 2025, which is a decrease of 12.9% from the $1.86 per share reported in the same quarter of the previous year. This decline suggests that PPG's performance is likely to continue its downward trend in the near term.
2. Revenue Expectations: The forecast for Q1 2025 does not provide insight into revenue projections. However, considering the company's recent performance and the decline in industrial and architectural coatings demand due to rising U.S. mortgage rates and weakened factory activity, it is reasonable to assume that revenue may continue to be under pressure.
3. Historical Performance: PPG has a track record of delivering mixed results, surpassing or meeting consensus estimates twice while missing expectations on two occasions over the past four quarters. This inconsistency makes it challenging to predict a strong turnaround based on the Q1 2025 forecast alone.
4. Market Sentiment: Despite the expected earnings decline, PPG's average analyst price target is $128.25, indicating a potential upside of 26.7% from the current price. This suggests that analysts are not entirely bearish on the stock, but it does not guarantee a turnaround.
5. External Factors: PPG is exposed to the automotive sector and has been impacted by new tariffs, which have increased costs and affected demand. These external factors are likely to continue influencing PPG's performance in the near term.

In conclusion, while there is some potential for a rebound as suggested by the average analyst price target, the Q1 2025 forecast does not provide a strong signal for a definitive turnaround after 2024's misses. Investors should remain cautious and monitor PPG's performance closely, considering both internal strategic initiatives and external market conditions.