Axalta Coating Systems (NYSE:AXTA) Reaches New 12-Month High After Strong Earnings

Key Points

• Axalta shares reached a new 52-week high, trading as high as $35.97 after the company reported adjusted EPS of $0.72, beating the $0.65 analyst consensus.
• Quarterly revenue rose 3.1% year over year to $1.35 billion, also exceeding estimates, while the company reported a 7.22% net margin and 22.37% return on equity.
• Despite the strong quarter, near-term guidance was mixed: full-year 2026 EPS guidance remains $2.55–$2.70, but third-quarter EPS guidance of $0.70 is below the $0.72 consensus; analysts maintain an overall “Hold” rating with a $35.67 consensus price target.

Axalta Coating Systems Ltd. (NYSE:AXTA - Get Free Report) reached a new 52-week high during trading on Tuesday following a stronger than expected earnings report. The stock traded as high as $35.97 and last traded at $35.8550, with a volume of 665503 shares traded. The stock had previously closed at $33.74.

The specialty chemicals company reported $0.72 EPS for the quarter, beating the consensus estimate of $0.65 by $0.07. Axalta Coating Systems had a return on equity of 22.37% and a net margin of 7.22%.The business had revenue of $1.35 billion for the quarter, compared to the consensus estimate of $1.31 billion. During the same period last year, the business posted $0.64 EPS. The company's revenue was up 3.1% compared to the same quarter last year. Axalta Coating Systems has set its FY 2026 guidance at 2.550-2.700 EPS and its Q3 2026 guidance at 0.700-0.700 EPS.

Axalta Coating Systems News Summary

Here are the key news stories impacting Axalta Coating Systems this week:

• Positive Sentiment: Axalta reported adjusted earnings of $0.72 per share, up from $0.64 a year earlier and above the $0.65 analyst consensus. Axalta Coating Systems Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Quarterly revenue reached $1.35 billion, surpassing the $1.31 billion estimate and increasing 3.1% year over year. The earnings beat indicates stronger-than-expected operating performance and was the primary catalyst for the stock’s upward move. Axalta Coating Systems Earnings Report
• Positive Sentiment: The company posted a 7.22% net margin and 22.37% return on equity, reinforcing the view that Axalta continues to generate solid profitability and shareholder returns.
• Neutral Sentiment: Axalta maintained full-year 2026 EPS guidance of $2.55 to $2.70. The range includes the $2.59 analyst consensus, but its midpoint is modestly below expectations, limiting the potential upside from the otherwise strong quarterly report.
• Negative Sentiment: Third-quarter EPS guidance of $0.70 was below the $0.72 consensus estimate. This suggests investors may expect some near-term moderation in earnings, although the company’s full-year outlook remains intact.

Analyst Ratings Changes

Several research analysts have issued reports on the company. Citigroup started coverage on Axalta Coating Systems in a research report on Thursday, June 4th. They issued a "buy" rating and a $44.00 target price on the stock. Wells Fargo & Company downgraded Axalta Coating Systems from an "overweight" rating to an "equal weight" rating and lowered their target price for the company from $39.00 to $30.00 in a research report on Friday, April 10th. Wall Street Zen upgraded Axalta Coating Systems to a "buy" rating in a research report on Saturday. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Axalta Coating Systems in a research note on Tuesday, June 16th. Finally, UBS Group lifted their price objective on Axalta Coating Systems from $31.00 to $32.00 and gave the company a "neutral" rating in a research report on Friday, May 1st. Four investment analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Axalta Coating Systems presently has an average rating of "Hold" and a consensus price target of $35.67.

Institutional Trading of Axalta Coating Systems

Institutional investors have recently made changes to their positions in the business. Artisan Partners Limited Partnership raised its stake in Axalta Coating Systems by 887.2% during the 4th quarter. Artisan Partners Limited Partnership now owns 12,575,932 shares of the specialty chemicals company's stock valued at $406,328,000 after purchasing an additional 11,301,977 shares during the period. Channing Capital Management LLC grew its holdings in Axalta Coating Systems by 672.6% during the 4th quarter. Channing Capital Management LLC now owns 3,037,990 shares of the specialty chemicals company's stock valued at $98,157,000 after buying an additional 2,644,783 shares in the last quarter. Empyrean Capital Partners LP bought a new stake in shares of Axalta Coating Systems during the fourth quarter valued at approximately $66,236,000. UBS Group AG lifted its holdings in shares of Axalta Coating Systems by 207.4% in the fourth quarter. UBS Group AG now owns 2,902,507 shares of the specialty chemicals company's stock worth $93,780,000 after buying an additional 1,958,395 shares in the last quarter. Finally, Dimensional Fund Advisors LP boosted its position in shares of Axalta Coating Systems by 36.2% during the fourth quarter. Dimensional Fund Advisors LP now owns 6,941,250 shares of the specialty chemicals company's stock worth $224,282,000 after acquiring an additional 1,845,353 shares during the last quarter. Hedge funds and other institutional investors own 98.28% of the company's stock.

Axalta Coating Systems Stock Up 5.8%

The company has a quick ratio of 1.53, a current ratio of 2.10 and a debt-to-equity ratio of 1.27. The company has a market capitalization of $7.64 billion, a PE ratio of 20.93, a PEG ratio of 1.60 and a beta of 1.24. The company's 50 day moving average is $32.48 and its two-hundred day moving average is $31.22.

Axalta Coating Systems Company Profile

Axalta Coating Systems is a global leader in the development, manufacture and sale of liquid and powder coatings. The company's product portfolio spans refinish coatings for the automotive collision repair market, original equipment manufacturer (OEM) coatings for new vehicle production, and industrial coatings including electrodeposition (E-coat) and powder coatings for a variety of sectors such as architecture, heavy equipment and general industrial applications.

Tracing its roots to the 19th century and rebranded as Axalta following its separation from DuPont Performance Coatings in 2013, the company has built a presence in more than 100 countries.

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