Axalta Q2 sales and adjusted EPS beat estimates on acquisitions
AXTA•Outlook
Axalta sees third-quarter net sales growth in the low single-digit percentage range.
The company expects third-quarter adjusted EBITDA of $295 million to $305 million and forecasts full-year adjusted diluted EPS of $2.55 to $2.70.
What drove the results
- Price mix and acquisitions — Sales growth was driven by favorable price mix, foreign currency translation, and contributions from acquisitions.
- Operating costs and interest — Adjusted net income rose due to reduced operating expenses and lower interest expense.
- Commercial vehicle volumes — Mobility Coatings segment growth was supported by higher commercial vehicle volumes in all regions.
Key figures and analyst view
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Sales | Beat | $1.35 bln | $1.31 bln (14 Analysts) |
| Q2 Adjusted EPS | Beat | $0.72 | $0.65 (15 Analysts) |
| Q2 EPS | $0.41 |
The current average analyst rating on the shares is "buy," with 7 "strong buy" or "buy," 9 "hold," and no "sell" or "strong sell" recommendations.
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.
