A prominent worldwide coatings firm, Axalta Coating Systems (NYSE: AXTA) inches up in Friday early trading session as the firm will report financial results for the third quarter of 2022 after the market closes on Tuesday, October 25. The press release and accompanying materials will be available on axalta.com’s Investor Relations page.
In addition, the firm will have a conference call on Wednesday, October 26 at 8 a.m. ET. Interim Chief Executive Officer Rakesh Sachdev and Chief Financial Officer Sean Lannon will assess the company’s financial performance for the time. There will be a live webcast of the conference call available here. A webcast replay will be available immediately after the call and will be available until October 26, 2023.
Axalta Coating Systems (NYSE:AXTA) Earnings Continue To Decline
The share price of Axalta Coating Systems Ltd. (AXTA) has dropped 31% in the previous year. However, this outperforms the market’s 44% fall. In the long run, the stock is down 26% in three years. Recently, the share price has fallen another 20% in a month. We should add, however, that the price may have been influenced by the larger market, which is down 17% in the same time frame.
Since Axalta Coating Systems’ value has dropped by $463 million in the last seven days, let’s check if the longer-term loss is being driven by the company’s economics. Axalta Coating Systems had to announce a 27% drop in earnings per share over the previous year. It is worth noting that the 31% reduction in share price is fairly close to the EPS drop. Investors may have lost trust in the stock as a result of the reduced EPS, but this does not appear to have occurred. Rather, the share price has roughly mirrored earnings per share increase.
It’s certainly worth mentioning that the CEO gets paid less than the median for firms of similar size. While CEO salary is always worth investigating, the main concern is whether the firm can continue to expand earnings in the future. If you want to learn more about Axalta Coating Systems’ profits, sales, and cash flow, this free interactive report is a fantastic place to start.
While the loss of 31% in Axalta Coating Systems shares throughout the year was disappointing, it was not as severe as the market loss of 44%. Given a five-year cumulative loss of 5% per year, it appears that returns have decreased in the previous twelve months. While some investors do well by specialized in buying distressed (but still undervalued) firms, remember what Buffett said: “turnarounds seldom turn.” While examining the many effects that market circumstances might have on the share price is crucial, there are other aspects that are even more significant.