PPG Industries (NYSE:PPG) announced this morning that it expects Q1/23 adjusted EPS to be in the range of $1.52-$1.58, exceeding previous guidance of $1.10-$1.20. As a result, shares surged nearly 5% yesterday.

Margin recovery accelerated in Q1, driven by higher sales volumes and additional selling price capture, led by aerospace and automotive OEM coatings businesses. The company noted higher year-over-year earnings were seen across most of the portfolio, including Europe, and volumes were better in China due to fewer pandemic disruptions than originally expected.

Analysts at RBC Capital raised their 2023/2024 estimates following the updated guidance and raised their price target to $143 from $133, while maintaining their Sector Perform rating.