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Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
In the last reported quarter, RPM’s adjusted earnings of $1.56 per share met the consensus mark and increased 14.7% from the year-ago period. Net sales of $2.008 billion marginally missed the consensus mark of $2.01 billion and slipped 0.4% from the prior year’s level of $2.02 billion.
The company’s earnings topped analysts’ expectations in two of the trailing four quarters, met in one and missed on another occasion, with the average surprise being 3.2%.
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings has remained unchanged at $1.76 per share over the past 60 days. The estimated value indicates a 7.3% increase from the year-ago earnings of $1.64 per share.
The consensus mark for revenues is $2.02 billion, indicating 0.3% year-over-year growth.
Factors to Shape RPM’s Q1 Results
RPM’s fiscal first-quarter net sales are likely to have registered tepid growth from the prior year’s levels, with growth mainly coming from Construction Products Group (CPG) given its focus on restoration, building envelope systems, and differentiated turnkey offerings. The company is benefiting from infrastructure spending and investments in commercial and residential repair and maintenance. However, delays in a few large projects, weakness in certain specialty original equipment manufacturer or OEM markets and softness in demand in Do-It-Yourself or DIY are expected to have weighed on the company’s quarterly sales.
That said, strong pricing and MAP 2025 benefits, are expected to have added to the positives.
Buoyed by the above-mentioned headwinds, for the fiscal first quarter, RPM expects sales to be approximately flat compared to the record year-ago quarter’s sales.
Segment-wise, the CPG segment (which contributed 36.8% to fiscal 2024 net sales) is expected to see low single-digit revenue growth. The growth will be fueled by a focus on restoration, building envelope systems, and differentiated turnkey offerings. CPG is benefiting from infrastructure spending and investments in commercial and residential repair and maintenance. We expect CPG sales to grow 2.4% year over year.
Consumer Group (CG) sales (which contributed 33.5% to fiscal 2024 net sales) are projected to decline by low single digits. Market share gains and strength in international markets are expected to offset some of the continued softness in the DIY segment. Our model predicts CG sales to decline 1.9% year over year in the quarter.
Performance Coatings Group (PCG) sales (which contributed 19.9% to fiscal 2024 net sales) are anticipated to be flat as the group faces challenging comparisons from the prior year. Some large projects were completed in the first quarter of fiscal 2024, and other projects are experiencing delays, pushing revenue recognition into later quarters. Our model predicts PCG sales to grow 0.4% year over year in the quarter.
Specialty Products Group (SPG) sales (which contributed 9.7% to fiscal 2024 net sales) are expected to decline slightly (low single digits) due to continued softness in demand across certain specialty OEM markets. However, the segment faces easier comparisons from the prior year, which may help limit the extent of the decline. Our model predicts SPG sales to decline 1.1% year over year in the quarter.
The company’s ongoing MAP 2025 cost-saving measures, such as plant consolidations and streamlining SG&A, will help improve margins and offset flat or declining sales. RPM anticipates its fiscal first-quarter adjusted EBIT to rise in the mid-single digits from the year-ago period.
What Our Model Indicates For RPM
Our proven model does not conclusively predict an earnings beat for RPM International this time around. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as you will see below.
Earnings ESP: The company’s earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: RPM International currently carries a Zacks Rank #2.
Stocks With a Favorable Combination
According to our model, here are some companies in the broader construction sector that have the right combination of elements to post an earnings beat in the quarter to be reported.
DY’s earnings topped the consensus mark in three of the last four quarters and missed on one occasion, the average being 27.9%. Earnings for the to-be-reported quarter are expected to decline 15.3% year over year.
Summit Materials, Inc. (SUM - Free Report) has an Earnings ESP of +2.30% and a Zacks Rank #3.
SUM’s earnings topped the consensus mark in all the last four quarters, the average being 19.3%. Earnings for the to-be-reported quarter are expected to decline 6.2% year over year.
Otis Worldwide (OTIS - Free Report) has an Earnings ESP of +0.69% and carries a Zacks Rank #2.
OTIS’ earnings topped the consensus mark in all the last four quarters, the average being 3.9%. Earnings for the to-be-reported quarter are expected to grow 2.1% year over year.
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RPM International Gears Up for Q1 Earnings: Things to Keep in Mind
RPM International Inc. (RPM - Free Report) is slated to report first-quarter fiscal 2025 results on Oct. 2 before the opening bell.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
In the last reported quarter, RPM’s adjusted earnings of $1.56 per share met the consensus mark and increased 14.7% from the year-ago period. Net sales of $2.008 billion marginally missed the consensus mark of $2.01 billion and slipped 0.4% from the prior year’s level of $2.02 billion.
The company’s earnings topped analysts’ expectations in two of the trailing four quarters, met in one and missed on another occasion, with the average surprise being 3.2%.
RPM International Inc. Price and EPS Surprise
RPM International Inc. price-eps-surprise | RPM International Inc. Quote
How Are Estimates Placed for RPM?
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings has remained unchanged at $1.76 per share over the past 60 days. The estimated value indicates a 7.3% increase from the year-ago earnings of $1.64 per share.
The consensus mark for revenues is $2.02 billion, indicating 0.3% year-over-year growth.
Factors to Shape RPM’s Q1 Results
RPM’s fiscal first-quarter net sales are likely to have registered tepid growth from the prior year’s levels, with growth mainly coming from Construction Products Group (CPG) given its focus on restoration, building envelope systems, and differentiated turnkey offerings. The company is benefiting from infrastructure spending and investments in commercial and residential repair and maintenance. However, delays in a few large projects, weakness in certain specialty original equipment manufacturer or OEM markets and softness in demand in Do-It-Yourself or DIY are expected to have weighed on the company’s quarterly sales.
That said, strong pricing and MAP 2025 benefits, are expected to have added to the positives.
Buoyed by the above-mentioned headwinds, for the fiscal first quarter, RPM expects sales to be approximately flat compared to the record year-ago quarter’s sales.
Segment-wise, the CPG segment (which contributed 36.8% to fiscal 2024 net sales) is expected to see low single-digit revenue growth. The growth will be fueled by a focus on restoration, building envelope systems, and differentiated turnkey offerings. CPG is benefiting from infrastructure spending and investments in commercial and residential repair and maintenance. We expect CPG sales to grow 2.4% year over year.
Consumer Group (CG) sales (which contributed 33.5% to fiscal 2024 net sales) are projected to decline by low single digits. Market share gains and strength in international markets are expected to offset some of the continued softness in the DIY segment. Our model predicts CG sales to decline 1.9% year over year in the quarter.
Performance Coatings Group (PCG) sales (which contributed 19.9% to fiscal 2024 net sales) are anticipated to be flat as the group faces challenging comparisons from the prior year. Some large projects were completed in the first quarter of fiscal 2024, and other projects are experiencing delays, pushing revenue recognition into later quarters. Our model predicts PCG sales to grow 0.4% year over year in the quarter.
Specialty Products Group (SPG) sales (which contributed 9.7% to fiscal 2024 net sales) are expected to decline slightly (low single digits) due to continued softness in demand across certain specialty OEM markets. However, the segment faces easier comparisons from the prior year, which may help limit the extent of the decline. Our model predicts SPG sales to decline 1.1% year over year in the quarter.
The company’s ongoing MAP 2025 cost-saving measures, such as plant consolidations and streamlining SG&A, will help improve margins and offset flat or declining sales. RPM anticipates its fiscal first-quarter adjusted EBIT to rise in the mid-single digits from the year-ago period.
What Our Model Indicates For RPM
Our proven model does not conclusively predict an earnings beat for RPM International this time around. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as you will see below.
Earnings ESP: The company’s earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: RPM International currently carries a Zacks Rank #2.
Stocks With a Favorable Combination
According to our model, here are some companies in the broader construction sector that have the right combination of elements to post an earnings beat in the quarter to be reported.
Dycom Industries (DY - Free Report) has an Earnings ESP of +3.21% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
DY’s earnings topped the consensus mark in three of the last four quarters and missed on one occasion, the average being 27.9%. Earnings for the to-be-reported quarter are expected to decline 15.3% year over year.
Summit Materials, Inc. (SUM - Free Report) has an Earnings ESP of +2.30% and a Zacks Rank #3.
SUM’s earnings topped the consensus mark in all the last four quarters, the average being 19.3%. Earnings for the to-be-reported quarter are expected to decline 6.2% year over year.
Otis Worldwide (OTIS - Free Report) has an Earnings ESP of +0.69% and carries a Zacks Rank #2.
OTIS’ earnings topped the consensus mark in all the last four quarters, the average being 3.9%. Earnings for the to-be-reported quarter are expected to grow 2.1% year over year.