RPM International Increases Sales but Misses Estimates on Earnings
RPM International (NYS: RPM) reported earnings on Jan. 5. 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 on earnings per share.
Compared to the prior-year quarter, revenue improved, and earnings per share increased slightly.
Margins dropped across the board.
RPM International booked revenue of $916 million. The five analysts polled by S&P Capital IQ expected a top line of $895 million. Sales were 11% higher than the prior-year quarter's $826 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.37. The seven earnings estimates compiled by S&P Capital IQ predicted $0.39 per share on the same basis. GAAP EPS of $0.38 for Q2 were 1.5% higher than the prior-year quarter's $0.38 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 40.3%, 80 basis points worse than the prior-year quarter. Operating margin was 9.5%, 130 basis points worse than the prior-year quarter. Net margin was 5.5%, 40 basis points worse than the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods.
What does the future hold?
Next quarter's average estimate for revenue is $731 million. On the bottom line, the average EPS estimate is $0.01.
Next year's average estimate for revenue is $3.7 billion. The average EPS estimate is $1.56.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 344 members out of 367 rating the stock outperform, and 24 members rating it underperform. Among 91 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 89 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.
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At the time this article 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.
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