RPM International (RPM) 2021 Q4 Financial Results Preview

RPM International Inc. (NYSE:RPM) traces its roots back to 1947 when founder Frank Sullivan established Republic Powdered Metals to sell heavy-duty aluminum roof coating. The company achieved a sales landmark of $2 million by 1957. Over the years, RPM grew by adding new products to its portfolio, stepping into new regions, and acquisitions. Today, it is a leading manufacturer of paints, sealants, and coating for maintenance and protection.

The increasing construction and maintenance activities across the U.S. helped RPM report better-than-expected financial results for its fiscal fourth quarter. The Ohio-based company reported earnings of $1.20 per share for the three months ended May 31, up 42.9 percent from 84 cents per share in the year-ago quarter.

Excluding certain items, RPM reported adjusted earnings of $1.28 per share, beating analysts’ average estimate of $1.26 per share. Revenue for the quarter jumped nearly 20 percent on a year-over-year basis to $1.74 billion, exceeding the consensus forecast of $1.68 billion.

If we look at the performance of key segments, revenue from the construction products group jumped 33.2 percent to $629.4 million, while performance coatings group revenue rose 20.5 percent to $283.3 million. In comparison, consumer group revenue inched up 2 percent to $628.9 million.

Speaking on the results, CEO Frank Sullivan said, “As we conclude a fiscal year unlike any other, I am extremely grateful for the perseverance of our associates around the world. Through their efforts, we were able to generate very strong fourth-quarter and full-year financial results.”

Looking forward, RPM is expecting its revenue to grow in the low to mid-single digits range for the first quarter.

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