RPM - RPM jumps after quarterly results beat estimates
2023-07-26 11:31:30 ET
RPM International ( NYSE: RPM ) on Wednesday rose as much as 9.7% after the maker of paint brands including Rust-Oleum and Zinsser beat the quarterly estimates of Wall Street analysts.
Sales rose 1.6% from a year earlier to $2.02 billion in its fiscal Q4 ended May 31, beating the consensus estimate of $1.98 billion.
Net income fell 24% to $151.4 million, or $1.18 a share, from $199 million, or $1.54 a share, a year earlier. Adjusted EPS of $1.36 beat the consensus estimate of $1.29.
Sales at its specialty products group that serves original equipment manufacturers declined 14% to $193.4 million as customers destocked their inventories, according to RPM ( RPM ).
“As challenging conditions impacted certain end markets, our nimbleness and balanced business model enabled our growth,” Frank C. Sullivan, RPM chairman and CEO, said in prepared remarks. “Several businesses benefited from their pivot to selling engineered solutions into infrastructure and reshoring-related capital projects, and our strategic focus on maintenance and repair provided resilience in construction end markets.”
The company estimated Q1 sales growth will be a low-single-digit percentage, while adjusted EBIT growth will be in the high single digits. Its full-year 2024 outlook foresees sales growth of mid-single digits and adjusted EBIT growth of low-double-digits to mid-teens.
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RPM jumps after quarterly results beat estimates