RPM International Beats on Both Top and Bottom Lines
RPM International (NYS: RPM) reported earnings on April 5. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Feb. 29 (Q3), RPM International beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share expanded significantly.
Gross margin dropped, operating margin improved, and net margin increased.
Revenue details
RPM International tallied revenue of $773.6 million. The five analysts polled by S&P Capital IQ looked for net sales of $733.4 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $678.9 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 $0.05. The seven earnings estimates compiled by S&P Capital IQ predicted $0.02 per share. GAAP EPS of $0.05 for Q3 were 400% higher than the prior-year quarter's $0.01 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 39.2%, 50 basis points worse than the prior-year quarter. Operating margin was 3.3%, 140 basis points better than the prior-year quarter. Net margin was 0.9%, 70 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $1.08 billion. On the bottom line, the average EPS estimate is $0.61.
Next year's average estimate for revenue is $3.75 billion. The average EPS estimate is $1.63.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 342 members out of 367 rating the stock outperform, and 25 members rating it underperform. Among 83 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 81 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 $26.25.
Can your portfolio provide you with enough income to last through retirement? You'll need more than RPM International. Learn how to maximize your investment income in our free report: "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
Add RPM International to My Watchlist.
At the time thisarticle was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
