RPM International Q2 Profit Rises; Backs FY Outlook

(RTTNews) - RPM International Inc. (RPM) reported that its net income for its fiscal 2020 second quarter ended November 30, 2019 rose 56.5% to $77.0 million from $49.2 million in the year-ago period. Earnings per share were $0.59, an increase of 59.5% over the $0.37 reported in the year-ago quarter.

Excluding the restructuring and other charges, as well as investment gains and losses, adjusted earnings per share increased 31.0% to $0.76 from $0.58 last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.73 per share for the quarter. Analysts' estimates typically exclude special items. Quarterly net sales were $1.40 billion, up 2.8% over the $1.36 billion reported a year ago. Analysts expected revenues of $1.40 billion for the quarter.

For the fiscal 2020 third quarter, the company expects sales to be up 2.5% to 4% with strong leverage to the bottom line for an estimated 25% to 30% adjusted EBIT growth, resulting in adjusted earnings per share in the high-teens to low-20-cent range.

The company reaffirmed its full-year fiscal 2020 guidance. Revenue growth is expected to be on the low end of its previously disclosed range of 2.5% to 4%. It expects adjusted earnings per share to between $3.30 and $3.42 for fiscal 2020. Analysts expect annual earnings of $3.35 per share.