The 10-second takeaway
For the quarter ended Aug. 31 (Q1), RPM International missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.
Gross margins were steady, operating margins dropped, net margins shrank.
RPM International reported revenue of $1.05 billion. The five analysts polled by S&P Capital IQ foresaw revenue of $1.09 billion on the same basis. GAAP reported sales were 6.2% higher than the prior-year quarter's $985.9 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 $0.64. The eight earnings estimates compiled by S&P Capital IQ forecast $0.64 per share. GAAP EPS of $0.26 for Q1 were 56% lower than the prior-year quarter's $0.59 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 41.5%, about the same as the prior-year quarter. Operating margin was 11.7%, 170 basis points worse than the prior-year quarter. Net margin was 3.2%, 460 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $998.8 million. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $4.08 billion. The average EPS estimate is $1.82.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 346 members out of 371 rating the stock outperform, and 25 members rating it underperform. Among 87 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 85 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 $29.50.
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