RPM International Beats on Both Top and Bottom Lines
RPM International (NYS: RPM) reported earnings on July 23. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended May 31 (Q4), RPM International beat slightly on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share improved significantly.
Gross margins shrank, operating margins increased, and net margins expanded.
RPM International booked revenue of $1.10 billion. The five analysts polled by S&P Capital IQ looked for sales of $1.08 billion on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $981.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.63. The eight earnings estimates compiled by S&P Capital IQ predicted $0.61 per share. GAAP EPS of $0.63 for Q4 were 17% higher than the prior-year quarter's $0.54 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 41.8%, 60 basis points worse than the prior-year quarter. Operating margin was 12.5%, 30 basis points better than the prior-year quarter. Net margin was 7.5%, 40 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.09 billion. On the bottom line, the average EPS estimate is $0.63.
Next year's average estimate for revenue is $4.06 billion. The average EPS estimate is $1.78.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 343 members out of 367 rating the stock outperform, and 24 members rating it underperform. Among 89 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 86 give RPM International a green thumbs-up, and three 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 $28.00.
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The article RPM International Beats on Both Top and Bottom Lines 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 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.