Axalta Coating Systems (NYSE: AXTA) reported Q4 EPS of $0.30, $0.02 worse than the analyst estimate of $0.32. Revenue for the quarter came in at $1.14 billion versus the consensus estimate of $1.14 billion.

GUIDANCE:

Axalta Coating Systems sees Q1 2022 EPS of $0.22-$0.29, versus the consensus of $0.37.

• Net Sales: ~+5% including ~(3)% FX, ~4% M&A benefit; anticipated price of mid- to high-single digits
• Performance Coatings: high single digits growth (ex-FX and M&A)
• Mobility Coatings: high single digits contraction (ex-FX and M&A)
• Adjusted EBIT: $100-120 million
• D&A: ~$81 million; including ~$24 million of step-up D&A
• Interest Expense: ~$32 million
• Tax Rate: 22-24%
• Adjusted Diluted EPS: $0.22-$0.29; including $0.02 FX headwind
• Expected raw material inflation of ~25-27% versus Q1 2021
• Full Year 2022 Commentary
• Performance Coatings growth expected from continued Refinish recovery, continued robust organic growth within Industrial Coatings
• Global auto production expected to improve; Mobility Coatings growth solidly ahead of global production levels
• Modest FX headwinds expected driven largely by the Euro and Real
• Raw material inflation expected at low double digits, inclusive of oil price at $85 per barrel (Brent); peak inflation is expected to occur in Q1 2022
• Price-mix anticipated to offset cumulative raw material inflation within 2022
• Adjusted EBIT expected to show strong growth versus 2021 on strong volumes and ramping of pricing, offset partially by continued inflationary pressure which is expected to moderate in 2H 2022

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