RPM International Earns 76 Cents per Share

This morning, RPM International (RPM) reported fiscal Q2 earnings of 76 cents per share. Wall Street had been expecting 73 cents per share. Net sales rose 2.8% to $1.40 billion. RPM had record cash flow, and EBIT margin improved by 180 basis points.

For fiscal 2020, RPM sees earnings ranging between $3.30 and $3.42 per share. That’s reiterating the same guidance they gave us in July. Wall Street expects $3.35 per share.

“Our very strong bottom-line growth in the quarter was primarily driven by our 2020 MAP to Growth, which is enabling us to grow earnings at a faster rate than those of our peers. Actions taken included delayering management, consolidating manufacturing, and shedding low-margin product lines to free up capacity for more value-added, EBIT-accretive volume. Pricing and moderating raw material inflation also positively impacted results,” stated Frank C. Sullivan, RPM chairman and chief executive officer. “In spite of a challenging macroeconomic environment, we were pleased with our solid organic sales growth in the quarter of 3.5%, which resulted from market share gains and pricing. Acquisitions contributed 0.6% to the quarter’s top-line growth, while foreign currency translation was a 1.3% headwind.”

And for Q3:

“For the fiscal 2020 third quarter, we expect sales to be up 2.5% to 4% with strong leverage to the bottom line for an estimated 25% to 30% adjusted EBIT growth, resulting in adjusted diluted EPS in the high-teens to low-20-cent range.

The shares are up a bit this morning.

Posted by on January 8th, 2020 at 9:34 am


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