PPG Industries Warns Badly on Fourth Quarter Outlook
(PPG - Get Report) shares are down nearly 5% as the company announced profits for the quarter will come in below current analyst expectations.
Management said the market softness which was seen initially in the U.S. industrial markets has now spread globally. The company sees the biggest weakness specifically in its industrial coatings segment -- including automotive -- and its glass segment, and both were expected to report fourth-quarter losses.
The company now sees fourth quarter EPS in the 35 cents to 45 cents range. This is below consensus estimates of 67 cents.
We have avoided shares of PPG since our early June coverage began, when the stock was trading at $61.23. The company has a 5.11% dividend yield, based on Friday night's closing stock price of 41.46. The stock does have long-term technical support in the $30 to $31 price area. We would like to see shares consolidate at these current levels, before considering if any sort of bottom is in place.
PPG Industries is not recommended at this time, holding a Dividend.com Rating of 3.3 out of 5 stars.
Aaron Rents Shares Dropping Despite Raised Guidance
just announced it is raising its 2009 profit guidance, citing the fact that more consumers are renting rather than buying furniture in this tough economy.
Management now sees 2009 profit of $1.70 to $1.85 per share, up from a prior outlook of $1.65 to $1.80 per share. The consensus estimates are for a profit of $1.74 per share in 2009.