RPM International Earnings: Here’s Why Shares are Down Now

RPM International Inc. (NYSE:RPM) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.59%.

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RPM International Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 40% to $0.07 in the quarter versus EPS of $0.05 in the year-earlier quarter.

Revenue: Rose 9.06% to $843.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: RPM International Inc. reported adjusted EPS income of $0.07 per share. By that measure, the company beat the mean analyst estimate of $0.06. It beat the average revenue estimate of $841.36 million.

Quoting Management: “RPM achieved solid operating results in the quarter,” stated Frank C. Sullivan, chairman and chief executive officer. “Net sales, net income and diluted earnings per share all increased significantly, on an as-adjusted basis, driven by strong performance in all of our consumer segment businesses and in many industrial segment businesses. Together with accretive acquisitions, this performance helped offset weaknesses in our European operations and North American roofing business. The improvement was all the more noteworthy given the difficult comparisons to last year’s strong third quarter during which RPM’s sales and earnings grew to record levels as a result of the exceptionally mild weather throughout most of North America.”

Key Stats (on next page)…

Revenue decreased 17.08% from $1.02 billion in the previous quarter. EPS decreased 82.5% from $0.40 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.72 to a profit $0.7. For the current year, the average estimate has moved down from a profit of $1.85 to a profit of $1.82 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)