Axalta Coating Systems (AXTA) is a U.S.-based company that specializes in paints and coatings for industrial materials and sectors, including the automotive and aerospace industries.
Recently, AXTA talked down earnings expectations. The company projected that its third-quarter sales would fall by roughly $40 million.
AXTA also highlighted that its earnings before interest and taxes would be about $130 million to $140 million… Below analysts’ estimate of $144.8 million.
The coatings company withdrew its previous outlook for the entire year as well thanks to global supply-chain disruptions.
These issues have impacted AXTA’s performance within the light vehicle-end market, which was already facing pressure from the ongoing chip shortage.
And the company expects these woes won’t end anytime soon. AXTA forecasts that supply-chain issues will weigh on its operations through 2022 due to lower vehicle production numbers in the automotive space.
This suggests that now may be the time for investors to sell, as these factors could put pressure on AXTA’s future quarterly results.
Don't be blindsided by the global chip shortage
By now, you've no doubt seen the headlines about a global chip shortage.
GM and Toyota factories are shutting down…
Mass shortages of electronics are commonplace…
Everything from our food supply to medical device production is being strained to the breaking point.
And there is still no end in sight. As Intel reports, this shortage is set to continue for, “Several years.”
You may know it's happening. You may know something seems to be very wrong…
But what you probably don't yet realize what few so far have figured out…
Is the disturbing truth behind all this.
And the fact that when chip shortages like this one happened in the past, the investors who took the right steps made 90 times their money…
…while millions of others who ignored these shortages LOST 90%.
Every time you hear about the chip crisis, remember: what we're really witnessing isn't some passing inconvenience or temporary trend.
What we are seeing is the most polarizing technological and financial event of our lifetimes.
One that will be a godsend for the select few investors who understand it…
And a disaster for the millions of others that are caught in its wake.
Already, behind the scenes, the realization is setting in.
- The world's most important tech corporations, including Apple, Amazon, Google, and Microsoft, wrote an urgent plea to Congress, practically begging for help with this chip crisis fast.
- The White House has stated this chip shortage is its “Top and immediate priority.”
- Rumor has it some Americans are already hoarding items that could become scarce in the weeks ahead.
Now, a former computer chip executive with over 20 years of experience is stepping forward. To explain every detail about what this shortage really means for you… and what it will soon mean for our world.
To view his full presentation on this pivotal moment in history, click here.