RPM International Inc. ($RPM) Earnings (Q3 FY22)

 RPM International Inc. (RPM) Earnings and Opinion:


RPM International is a company in the Basic Materials sector and operates in the Specialty Chemicals industry. The company sells specialty chemicals for industrial, consumer, and specialty markets worldwide. RPM International was incorporated in 1947 and is currently headquartered in Medina, Ohio. RPM has been traded on the stock market since at least 1980.

RPM International Inc. EPS and Revenue (Q3 FY22):

  • EPS of $0.38 beating expectations of $0.30
  • Revenue of $1.43B beating expectations of $1.41B
  • EPS was same (YOY) and Revenue was up 12.96% (YOY)
RPM International Inc. Q3 Highlights:
  • Net Income of $33M, with income before taxes at $40M
  • EBIT of $66.9M, 2.3% increase period-over-period
  • Adjusted EBIT of $80.6M, a 0.8% increase period-over-period
RPM International Inc. Q4 Financial Outlook:
  • Supply chain challenges and Raw Materials shortages are issues will put pressure on revenues and productivity
  • Sales growth in the low teens, which is lower than last years 19.6% growth
  • Adjusted EBIT expected to increase in the low teens
Opinion:
RPM International Inc. is currently trading a tad bit lower pre-market after reporting earnings for Q3 this morning. I can't tell if this is just because futures are down a bunch or if investors haven't really digested this earnings report yet. However in my eyes, I see the earnings reported as a win for the company. Especially with the way they put it in perspective, and how they have been dealing with a lot of macroeconomic challenges over the past year. They have supposedly been on the ball with their newly acquired plant in Texas. They have been able to alleviate a little bit of supply chain woes by scaling up in-house resin at the plant. RPM has seen accelerated growth in building construction and coatings systems which are two main areas in their business. With record numbers coming in this quarter, they announced a dividend of $0.40 a quarter which is a win for shareholders of the company. However, it will be interesting to see what the next quarter has in store. By the looks to things, it seems as if they are preparing for a little bit of a struggle due to raw material shortages as well as ongoing supply chain challenges. They still see the potential for growth, but it won't be like the results they put up last year. I can see Wall St. taking this in a bad way and the stock will probably slide a little bit due to the outlook the company put it out. Personally, I am going to check myself out of this one. I just see more upside in different sectors all together, although this stock seems to be heading in the right direction in the long-term. 


*Information from Yahoo Finance, RPM International, and Nasdaq
*Estimates attained from Zacks

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