We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
RPM International (RPM) to Report Q2 Earnings: What's in Store?
Read MoreHide Full Article
RPM International Inc. (RPM - Free Report) is scheduled to report second-quarter fiscal 2021 results on Jan 6, before the opening bell.
In the last reported quarter, the company’s sales and earnings topped the Zacks Consensus Estimate by 7.9% and 19% and grew 9.1% and 51.6% on a year-over-year basis, respectively. The upside was driven by the 2020 MAP to Growth initiative, strong pricing and a strategically-balanced business model.
Trend in Estimate Revision
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings has trended upward over the past 30 days to $1.00 from 99 cents per share. The estimated value indicates a 31.6% increase from the year-ago earnings of 76 cents per share. The consensus mark for revenues is $1.46 billion, suggesting a 4.2% year-over-year improvement.
Factors to Consider
Resilient housing and home improvement markets are expected to have aided RPM’s revenues in the fiscal second quarter. This along with accretive buyouts adds to the positives. RPM expects to have generated net sales growth in low-to mid-single digits year over year in the fiscal second quarter. The company’s adjusted EBIT is expected to increase more than 20% for the fiscal second quarter. Efficient execution of the MAP to Growth program and Ali acquisition are expected to have contributed to its top line.
The company expects Construction Products Group and Performance Coatings Group sales to decrease in the fiscal second and third quarter and increase in the final quarter of fiscal 2021. On the other hand, the Specialty Products Group sales are expected to remain flat in the first half but improve in the final half of fiscal 2021. Encouragingly, Consumer Group’s revenues will continue to grow on the rise in demand for the next few quarters, courtesy of strong housing market and new home improvement projects.
Meanwhile, the company is focused on cost-containment efforts by closing plants, merging IT system, centralizing more of its back-office functions and rationalizing its manufacturing footprint. However, it anticipates certain raw materials, and packaging-related inflation and additional overhead expenses resulting from the ongoing investments in capacity to build pressure on the bottom line.
Our proven model does not conclusively predict an earnings beat for RPM this time around. That is because 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. Unfortunately, that is not the case here, as you will see below.
Earnings ESP: Earnings ESP for RPM is -0.17%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
RPM International (RPM) to Report Q2 Earnings: What's in Store?
RPM International Inc. (RPM - Free Report) is scheduled to report second-quarter fiscal 2021 results on Jan 6, before the opening bell.
In the last reported quarter, the company’s sales and earnings topped the Zacks Consensus Estimate by 7.9% and 19% and grew 9.1% and 51.6% on a year-over-year basis, respectively. The upside was driven by the 2020 MAP to Growth initiative, strong pricing and a strategically-balanced business model.
Trend in Estimate Revision
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings has trended upward over the past 30 days to $1.00 from 99 cents per share. The estimated value indicates a 31.6% increase from the year-ago earnings of 76 cents per share. The consensus mark for revenues is $1.46 billion, suggesting a 4.2% year-over-year improvement.
Factors to Consider
Resilient housing and home improvement markets are expected to have aided RPM’s revenues in the fiscal second quarter. This along with accretive buyouts adds to the positives. RPM expects to have generated net sales growth in low-to mid-single digits year over year in the fiscal second quarter. The company’s adjusted EBIT is expected to increase more than 20% for the fiscal second quarter. Efficient execution of the MAP to Growth program and Ali acquisition are expected to have contributed to its top line.
The company expects Construction Products Group and Performance Coatings Group sales to decrease in the fiscal second and third quarter and increase in the final quarter of fiscal 2021. On the other hand, the Specialty Products Group sales are expected to remain flat in the first half but improve in the final half of fiscal 2021. Encouragingly, Consumer Group’s revenues will continue to grow on the rise in demand for the next few quarters, courtesy of strong housing market and new home improvement projects.
Meanwhile, the company is focused on cost-containment efforts by closing plants, merging IT system, centralizing more of its back-office functions and rationalizing its manufacturing footprint. However, it anticipates certain raw materials, and packaging-related inflation and additional overhead expenses resulting from the ongoing investments in capacity to build pressure on the bottom line.
RPM International Inc. Price and EPS Surprise
RPM International Inc. price-eps-surprise | RPM International Inc. Quote
What Our Model Indicates
Our proven model does not conclusively predict an earnings beat for RPM this time around. That is because 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. Unfortunately, that is not the case here, as you will see below.
Earnings ESP: Earnings ESP for RPM is -0.17%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company, which shares space with The Sherwin-Williams Company (SHW - Free Report) , TopBuild Corp. (BLD - Free Report) and Armstrong World Industries, Inc. (AWI - Free Report) in the Zacks Construction sector, currently has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>