RPM International Earns 86 Cents per Share

This morning, RPM International (RPM) reported Q1 earnings of 86 cents per share. That was two cents above expectations.

“We derived significant benefits from the nine acquisitions made in fiscal 2017, along with our selling, general and administrative (SG&A) cost reduction actions taken last year. Rising raw material costs negatively impacted gross profit margins. As a result, we instituted price increases, which began to take effect late in the quarter. After three years of foreign currency headwinds attributable to the strengthening U.S. dollar, currency translation was essentially neutral this quarter,” stated Frank C. Sullivan, RPM chairman and chief executive officer.

This was for their fiscal Q1 which ended in July. Previously, RPM said they see Q1 earnings ranging between 83 and 85 cents per share and between $2.85 and $2.95 per share for the fiscal year. At the time, that disappointed investors. Wall Street had been expecting 89 cents per share for Q1 and $3 per share for the fiscal year.

The company reiterated their full-year forecast of $2.85 to $2.95 per share. With hindsight, we can see that the disappointment wasn’t far below Wall Street’s original take. The shares are currently down about 1.5%.

Posted by on October 4th, 2017 at 11:27 am


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