RPM Earns 95 Cents per Share for Its Q1

RPM International (RPM) is out with its Q1 earnings this morning. For the first three months of its fiscal year, RPM earned 95 cents per share. That’s three cents more than expectations. Net sales were $1.47 billion compared to $1.46 billion for last year.

“We continued to experience the benefits of the plant rationalization, manufacturing improvements and center-led procurement initiatives of our 2020 MAP to Growth operating improvement plan during the quarter. These actions resulted in adjusted EBIT and EPS performance that met our projections despite modest top-line sales growth,” stated RPM chairman and CEO Frank C. Sullivan. “As we anticipated in July, sales growth was modest as a result of an extremely wet June that slowed painting and construction activity in North America and unfavorable foreign exchange. We were encouraged to see our restructuring program drive significant EBIT margin improvement across all of our segments. On a consolidated basis, our adjusted EBIT margin improved 260 basis points.”

For Q2, RPM expects sales to rise by 2% to 3% and EPS to be in the “low- to mid-70-cent range.” Let’s say that’s 72 to 75 cents per share. Wall Street had been expecting Q2 earnings of 76 cents per share.

RPM is reaffirming its previous guidance for the full year; however, the company now expects revenue growth to be at the low end of its range of 2.5% to 4%. RPM is maintaining its projected adjusted EBIT growth in the 20% to 24% range. For 2020 EPS, RPM still sees that ranging between $3.30 and $3.42 per share.

Posted by on October 2nd, 2019 at 9:07 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.