RPM International Increases Sales but Misses Estimates on Earnings

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RPM International (NYS: RPM) reported earnings on Jan. 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Nov. 30 (Q2), RPM International beat expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.

Gross margins grew, operating margins were steady, net margins shrank.

Revenue details
RPM International tallied revenue of $1.02 billion. The four analysts polled by S&P Capital IQ foresaw sales of $997.3 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $916.1 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.40. The eight earnings estimates compiled by S&P Capital IQ anticipated $0.42 per share. GAAP EPS of $0.31 for Q2 were 18% lower than the prior-year quarter's $0.38 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 41.8%, 150 basis points better than the prior-year quarter. Operating margin was 9.8%, about the same as the prior-year quarter. Net margin was 4.1%, 140 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $828.3 million. On the bottom line, the average EPS estimate is $0.06.

Next year's average estimate for revenue is $4.11 billion. The average EPS estimate is $1.84.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 346 members out of 370 rating the stock outperform, and 24 members rating it underperform. Among 97 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 95 give RPM International a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on RPM International is hold, with an average price target of $30.60.

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The article RPM International Increases Sales but Misses Estimates on Earnings originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere

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