RPM International (RPM) Tops Q2 EPS by 3c, Offers FY Guidance

January 8, 2020 6:48 AM EST

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RPM International (NYSE: RPM) reported Q2 EPS of $0.76, $0.03 better than the analyst estimate of $0.73. Revenue for the quarter came in at $1.4 billion versus the consensus estimate of $1.4 billion.


RPM International sees FY2020 EPS of $3.30-$3.42, versus the consensus of $3.35.

  • “For the fiscal 2020 third quarter, we expect sales to be up 2.5% to 4% with strong leverage to the bottom line for an estimated 25% to 30% adjusted EBIT growth, resulting in adjusted diluted EPS in the high-teens to low-20-cent range. As a reminder, our third quarter historically provides our most modest results each year because it falls during the winter months of December through February, when painting and construction activity slow due to cold and snowy weather. Based on past history, we expect roughly 20% of our annual consolidated sales to be generated during the third quarter and a proportionate amount of this fiscal year’s 2020 MAP to Growth savings will result during the period as well.
  • “Our fourth-quarter results are generally the strongest as work begins to accelerate on painting and construction projects as weather improves.
  • “Given our results for the first half and our expectations for the rest of the fiscal year, we are reaffirming the full-year fiscal 2020 guidance we provided on July 22, 2019 and maintained in our last earnings release in October. Our revenue growth is expected to be on the low end of our previously disclosed range of 2.5% to 4%. We expect to leverage the positive momentum of the 2020 MAP to Growth operating improvement plan to our bottom-line, and we are maintaining our projected adjusted EBIT growth in the 20% to 24% range. We expect this will result in adjusted diluted EPS between $3.30 and $3.42 for fiscal 2020,” stated Sullivan.

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

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