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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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 of Motley 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.