Axalta Q2 sales and adjusted EPS beat estimates on acquisitions

Overview

• Coatings maker's Q2 net sales rose 3%, beating analyst expectations

• Adjusted diluted EPS for Q2 rose 13% and beat analyst expectations

• Net income declined due to higher merger and acquisition costs

Outlook

• Axalta sees Q3 net sales growth in low single-digit percentage range

• Company expects Q3 Adjusted EBITDA of $295 mln to $305 mln

• Axalta forecasts full-year Adjusted Diluted EPS of $2.55 to $2.70

Result Drivers

• PRICE MIX ACQUISITIONS - Sales growth driven by favorable price mix, foreign currency translation, and contributions from acquisitions

• OPERATING COSTS INTEREST - Adjusted net income rose due to reduced operating expenses and lower interest expense

• COMMERCIAL VEHICLE VOLUMES - Mobility Coatings segment growth supported by higher Commercial Vehicle volumes in all regions

Company press release: ID:nGNX4NnJlm

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 9 "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 $37.00, about 9.7% above its July 27 closing price of $33.74

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

• July 27 - Element Solutions Q2 sales beat estimates on electronics segment strength

• July 28 - Switzerland's Forbo H1 net profit slips on higher costs, currency impact

• July 28 - Austria's Palfinger H1 profit falls on softer demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)