Overview

* Axalta Q3 net sales fell 2% yr/yr, missing analyst expectations

* Adjusted EPS for Q3 sets record, beats consensus expectations

* Company executed $100 mln in share repurchases during Q3

Outlook

* Axalta projects Q4 net sales growth in mid single-digit percentage

* Axalta expects FY 2025 net sales to exceed $5.1 bln

* Axalta plans up to $250 mln in share repurchases in Q4

Result Drivers

* PERFORMANCE COATINGS CHALLENGES - Net sales in Performance Coatings fell due to macroeconomic pressures in North America, partially offset by positive price-mix and favorable foreign currency translation

* MOBILITY COATINGS GROWTH - Mobility Coatings net sales rose 4% due to positive price-mix and favorable foreign currency translation, despite volume softness

* COST MANAGEMENT - Reduction in selling, general, and administrative expenses and lower interest expense contributed to increased net income

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Miss $1.28 $1.30

bln bln (15

Analysts

)

Q3 Beat $0.67 $0.64

Adjusted (18

EPS Analysts

)

Q3 EPS $0.51

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 8 "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 ( AXTA ) is $35.55, about 18.3% above its October 27 closing price of $29.06

* The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release:

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(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.)