RPM International (RPM) Misses Q4 EPS by 12c; Offers FY20 EPS Guidance

RPM International (NYSE: RPM) reported Q4 EPS of $1.02, $0.12 worse than the analyst estimate of $1.14. Revenue for the quarter came in at $1.6 billion versus the consensus estimate of $1.6 billion.

• Operating improvement plan takes hold in fourth quarter; benefits bottom line and enhances stockholder value
• Record sales reported, increasing 3% in the fourth quarter and 5% for the fiscal year
• Fourth-quarter net income increases 56%, diluted EPS up 62% and adjusted diluted EPS up 22%
• Realignment into 4 reportable segments in fiscal 2020 to provide greater visibility into the business
• Fiscal 2020 outlook of 2.5% to 4% sales growth, 20% to 24% adjusted EBIT growth and adjusted diluted EPS of $3.30 to $3.42

“We are very pleased with our significant earnings leverage for the quarter, which was bolstered by our 2020 MAP to Growth operating improvement plan, the benefits of which are beginning to be realized. Also contributing to the bottom line were recently implemented price increases and stabilizing raw material cost inflation. These gains were partially offset by continuing increases in costs for distribution and labor,” stated RPM chairman and CEO Frank C. Sullivan.

“Sales grew organically by 3.5%, while acquisitions contributed 1.9%. This sales growth was offset by unfavorable foreign exchange of 2.6%. Sales in North America, our largest market, were slowed by some of the wettest spring months on record, which caused delays in painting and construction projects. In addition, conditions in Europe, our second largest market, remained soft. Despite these challenges, our operating units were able to drive top-line growth and gain market share,” stated Sullivan.

GUIDANCE:

RPM International sees FY2020 EPS of $3.30-$3.42, versus the consensus of $3.34.

For earnings history and earnings-related data on RPM International (RPM) click here.

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