AXTA Earnings Prediction
The chart below shows how AXTA performed 10 days before and after its earnings report, based on data from the past quarters. Typically, AXTA sees a -2.99% change in stock price 10 days leading up to the earnings, and a -0.02% change 10 days following the report. On the earnings day itself, the stock moves by +3.48%. This data can give you a slight idea of what to expect for the next quarter's release.
AXTA Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.31B
1.06%
-0.68%
Gross Margin
32.27%
4.30%
-2.74%
Operating Margin
19.22%
52.78%
31.46%
Net Margin
10.45%
84.30%
35.19%
EPS
0.62
87.88%
34.78%
No Data Available
AXTA Earnings Analysis
Axalta Coating Systems Ltd Corporation (AXTA.N) Earnings Conference Call
Positive
Record Fourth Quarter Sales: Axalta achieved record fourth quarter net sales of $1.3 billion, driven by contributions from the CoverFlexx acquisition and above-industry growth in light vehicle sales.
Record Adjusted EBITDA Growth: Adjusted EBITDA increased by 10% year-over-year to a record $275 million in the fourth quarter, marking the 10th consecutive quarter of year-over-year growth.
Earnings Per Share Increase: Adjusted diluted EPS grew 30% year-over-year to $0.60, exceeding expectations primarily due to lower tax and interest expenses.
Net Leverage Ratio Improvement: The total net leverage ratio improved for the eighth consecutive quarter to a record low of 2.5x, aligning with the high end of the target set in the A plan.
EBITDA Margin Improvement: Full-year adjusted EBITDA reached $1.116 billion, with adjusted EBITDA margins improving by 280 basis points to 21.2%, achieving the full-year margin target outlined in the 2026 A plan two years ahead of schedule.
Negative
Net Sales Decline: Performance Coating’s fourth quarter net sales declined 1% year-over-year to $843 million, primarily due to lower volumes and unfavorable foreign currency translation.
Industrial Sales Decline: Industrial net sales declined 5% year-over-year to $298 million, driven by demand weakness in North America compared to the prior year period.
Operating Activities Cash Flow: Fourth quarter cash provided by operating activities was $234 million, with free cash flow totaling $177 million, reflecting a year-over-year decrease primarily due to increased planned capital expenditures and higher-than-anticipated working capital.
Tariff Impact on EBITDA: The company anticipates a full-year adjusted EBITDA impact of $10 million from new tariffs, which is included in the 2025 guidance, indicating potential headwinds to profitability.
Sales Growth Analysis: Despite achieving record net sales, volumes grew modestly on a full-year basis as growth in Mobility Coating was offset by a low single-digit decline in Performance Coating.
AXTA FAQs
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AXTA Earning Call Sentiment
Axalta Coating Systems Ltd. (NYSE:AXTA) Q4 2024 Earnings Call Transcript
AXTA.N
0.14%Positive
The earnings call highlights strong financial performance with record EBITDA and EPS, positive guidance, and strategic growth initiatives. Despite some demand weaknesses, the company has a robust share repurchase program and successful M&A activities. The Q&A section reveals management's confidence in overcoming challenges and leveraging opportunities, with analysts showing a generally positive sentiment. The company's strategic partnerships and transformation initiatives further support a positive outlook, suggesting a likely stock price increase of 2% to 8%.
