|Bid||101.69 x 1100|
|Ask||101.71 x 1800|
|Day's Range||101.59 - 102.23|
|52 Week Range||93.11 - 108.32|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.43%|
A higher dividend yield with good dividend growth is likely to attract more long-term investors and dividend investors. PPG’s peers Sherwin-Williams (SHW) and RPM International (RPM) have dividend yields of 0.77% and 2.21%, respectively, while Axalta (AXTA) hasn’t paid any dividends. In comparison to its peers’ yields, PPG’s dividend yield is neither better nor worse.
On August 6, Axalta (AXTA) announced the launch of Eleglas, decorative coatings that can be used to protect and enhance glass and ceramic surfaces. These coatings are water-based polymers with anti-shatter technology that keeps the glass and ceramic pieces intact if it breaks. This development marks Axalta’s expansion into the glass coatings market.
International Flavors & Fragrances’ (IFF) Flavors segment saw a fall in its contribution to the company’s overall revenue by 0.2 percentage points in the second quarter. The growth in the segment’s revenue was driven primarily by price increases and higher volume growth across all its categories and regions. The segment reported a net profit of $109.6 million in the second quarter, a rise of 13.2% YoY.
Albemarle’s (ALB) Catalysts segment accounted for 33.4% of ALB’s total revenues in Q2 2018 compared to 35% in Q2 2017, a decrease of 1.6 percentage points on a YoY (year-over-year) basis. This segment was formed by merging the company’s Refining Solutions and PCS businesses.
DowDuPont (DWDP) announced its Q2 2018 earnings before the market opened on August 2. It reported adjusted earnings per share (or EPS) of $1.37, an increase of 41% over its pro forma adjusted earnings per share of $0.97 in Q2 2017. The company beat the analysts’ adjusted earnings per share estimate of $1.30. In this series, we’ll look at DowDuPont’s earnings, revenues, and segment-wise performance.
DowDuPont (DWDP) announced its Q2 2018 earnings today, August 2. Its revenues were ~$24.24 billion, a growth of 17% over Q2 2017 pro forma revenues from continuing operations. It beat Wall Street analysts’ estimates of $23.59 billion.
LyondellBasell (LYB) is expected to report adjusted earnings per share of $2.92 in Q2 2018, implying a 3.5% increase on a year-over-year basis. In Q1 2017, LYB reported adjusted earnings per share of $2.82. LYB’s projected adjusted EPS growth is expected to be driven by higher revenue growth, share repurchases, and improved selling, general, and administrative expenses (or SG&A) as a percentage of sales.
LyondellBasell (LYB) is expected to report revenues of $9.37 billion in Q2 2018, an increase of 11.5% on a year-over-year basis. In Q2 2017, LYB reported revenues of $8.4 billion. If LYB can meet Wall Street expectations, then this would be LYB’s highest second-quarter revenue in four years.
In the second quarter, Praxair’s (PX) revenue rose 8.1% YoY (year-over-year) to $3.06 billion from $2.83 billion, beating analysts’ estimate of $3.03 billion. Its revenue breached the $3 billion mark for the first time in three years.
DowDuPont (DWDP) is expected to report revenue of $23.59 billion in the second quarter, an increase of 11.0% over Dow Chemical’s and DuPont’s combined revenue in Q2 2017. Dow Chemical and DuPont have divested several businesses to facilitate the merger. DowDuPont’s projected revenue growth is expected to be driven by improvements in all of its reporting segments. DWDP’s Agriculture segment will likely be the leader.
Air Products and Chemicals (APD) is expected to report an adjusted EPS of $1.84 in the third fiscal quarter—an increase of 11.5% compared to the same quarter last year. In the third quarter of 2017, Air Products and Chemicals reported an adjusted EPS of $1.65. The company beat analysts’ estimates in the past five quarters.
For Q2 2018, PPG Industries (PPG) reported revenue of $4.13 billion, an increase of 8.7% YoY (year-over-year). On a continuing operational basis, PPG’s revenue grew 8.6%. In Q2 2017, it reported revenues of $3.8 billion on a continuing operational basis. Its revenue beat analysts’ estimate of $4.11 billion.
In a press release on May 17, Ashland (ASH) announced the key dates for its fiscal second-quarter dividend. Ashland is expected to pay the dividend on June 15. Ashland has declared a dividend of $0.25 per share, an increase of 11.1% over the previous year. Its peers Chemours (CC), DowDuPont (DWDP), and Huntsman (HUN) have declared second-quarter dividends of $0.17, $0.38, and $0.16, respectively.
So far this year, Chemours (CC) stock has been muted and has failed to repeat its 2017 performance. Year-to-date, CC has risen 1.2%, outperforming peers Tronox (TROX), Kronos Worldwide (KRO), and RPM International (RPM), which have fallen 1.9%, 11.0%, and 1.7%, respectively.
International Flavors and Fragrances’ (IFF) Flavors segment saw a fall in its revenue contribution by 0.8 percentage points to the company’s overall revenue in 1Q18. The growth in the segment’s revenue was primarily driven by higher volume growth across most of the reporting regions. EMEA (Europe, the Middle East, and Africa) led with growth of 24% driven by the strong performance in the dairy, savory, and beverage businesses. North America revenue grew by 10% due to double-digit growth in Tastepoint along with the new business wins in the beverage and dairy businesses. Asia witnessed revenue growth of 6% resulting from double-digit growth in China and India.
DowDuPont’s (DWDP) Agriculture segment accounted for 17.7% of DWDP’s 1Q18 revenues, compared to 24.7% in 1Q17 on a pro forma basis. This segment reported revenues of ~$3.8 billion in 1Q18, a decrease of 24.6% on a year-over-year basis.
Based on the latest short interest report on April 13, International Flavors and Fragrances’ short interest has risen to its highest level since the beginning of 2018. IFF’s short interest as a percentage of its outstanding shares stands at 1.8% as of April 13 as compared to 1.3% at the beginning of the year. However, IFF stock fell 9.8% during this period, indicating the prevailing weakness in the stock.
On April 24, W. R. Grace (GRA) announced that it would be licensing its UNIPOL PP Process Technology to Inter Pipeline to be used in its Heartland Petrochemical complex in Alberta, Canada. The pipeline is expected to be in service by 2021. W.R. Grace did not specify the financial aspects of the deal, its second so far in 2018.
Air Products and Chemicals’ (APD) revenue rose 9.0% YoY (year-over-year) to $2.16 billion in fiscal 2Q18, missing analysts’ estimate of $2.2 billion. In 2Q17, APD’s revenue stood at $1.98 billion.
Since the beginning of 2018, the number of analysts tracking DowDuPont (DWDP) has increased from 25 to 27. Analysts’ consensus target price has moved up marginally from $81.87 to the current target price, which indicates analysts’ bullishness on the stock. The company reported an adjusted EPS (earnings per share) of $0.83—an increase of 40.7% year-over-year.
W.R. Grace (GRA) reported revenues of $431.5 million for 1Q18 today, reflecting growth of 8.4% from 1Q17. The company beat Wall Street analysts’ estimates of $419.76 million. Revenue growth was driven by a 14.2% increase in Specialty Catalysts sales. GRA’s Materials Technologies grew 11.0% while the Catalysts Technologies’ segments grew 7.5%.
LyondellBasell (LYB) is expected to report revenues of $9.4 billion in 1Q18, an increase of 11.0% on a year-over-year basis. In 1Q17, LYB reported revenues of $8.4 billion. LYB’s revenue has been on an upward trend since 1Q16 with the exception of 2Q17.
For 1Q18, PPG Industries (PPG) reported revenue of $3.78 billion, an increase of 6.2% on a YoY (year-over-year) basis. On a continuing operation basis, PPG’s revenue grew 8.6%. In 1Q17, PPG Industries reported revenue of $3.48 billion on a continuing operation basis. Since 2013, PPG’s revenue has grown at a CAGR (compound annual growth rate) of 2.6%.