Axalta Coating Systems (AXTA) Misses Q3 EPS by 2c, Revenues In-Line; Reaffirms FY17 Outlook

Axalta Coating Systems (NYSE: AXTA) reported Q3 EPS of $0.22, $0.02 worse than the analyst estimate of $0.24. Revenue for the quarter came in at $1.1 billion versus the consensus estimate of $1.1 billion.

2017 Guidance Update

We are reiterating our outlook for the full year 2017 as follows:

• Net sales growth of 6-7% assuming neutral FX impact and driven largely by acquisition contribution
• Adjusted EBITDA of $870-900 million
• Interest expense of ~$150 million
• Income tax rate, as adjusted, of 22-24%
• Free cash flow of $360-400 million
• Capital expenditures of ~$130 million
• Depreciation and amortization of ~$350 million
• Diluted shares outstanding of ~246 million

Third Quarter 2017 Highlights:

• Net sales of $1,091.8 million, up 7.0% as-reported and 5.1% on a constant currency basis versus Q3 2016
• Net income and Adjusted EBITDA impacted by lower volumes in Performance Coatings and by recent natural disasters and higher raw material costs, partly offset by acquisition contribution
• Operating cash flow of $212.3 million and free cash flow of $182.5 million in Q3 versus $145.3 million and $114.8 million, respectively, in the same quarter last year
• Repurchased $50.1 million in Axalta stock at average price of $29.05
• Acquisition contributions on track and key integration actions to be largely completed by year-end

For earnings history and earnings-related data on Axalta Coating Systems (AXTA) click here.

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