Stock Monitor: WD-40 Post Earnings Reporting
LONDON, UK / ACCESSWIRE / January 17, 2018 / Active-Investors.com has just released a free earnings report on RPM International Inc. (NYSE: RPM) ("RPM"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=RPM. The Company reported its second quarter fiscal 2018 operating and financial results on January 04, 2018. The specialty chemicals Company outperformed top- and bottom-line expectations, and raised its Fiscal 2018 EPS guidance. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, RPM International most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
For the quarter ended November 30, 2017, RPM's net sales jumped 10.5% to $1.32 billion compared to $1.19 billion in Q2 FY17. The Company's organic sales improved 4.2% on a y-o-y basis, and acquisition growth added 4.7% in the reported quarter. The Company's revenue numbers exceeded analysts' estimates of $1.25 billion.
During Q2 FY18, RPM's earnings before income tax (EBT) totaled $109.2 million compared to a loss before income tax of $106.9 million in Q2 FY17. The Company's consolidated earnings before interest and taxes (EBIT) were $131.8 million for the reported quarter versus a consolidated loss before interest and taxes of $86.4 million reported in the year earlier same quarter. Excluding the year-ago charges, RPM's consolidated EBIT improved 15.4% over EBIT of $114.2 million in Q2 FY17.
For Q2 FY18, RPM reported a net income of $95.5 million, or $0.70 per diluted share, compared to a net loss of $70.9 million, or loss of $0.54 per diluted share, in Q2 FY17. The Company had reported an adjusted net income of $70.5 million, or $0.52 per share, in the year ago comparable period. RPM's diluted earnings per share of $0.70 in the reported quarter included a $0.09 per diluted share tax benefit relative to last year's tax rate. The Company's earnings surpassed Wall Street's estimates of $0.60 per share.
Segment Results
During Q2 FY18, RPM's Industrial segment's sales increased 11.0% to $702.9 million from $633.4 million in Q2 FY17. The segment's organic sales improved 5.4% on a y-o-y basis, driven by North American roofing and businesses providing polymer flooring to commercial and industrial markets, while acquisition growth added 3.3%. In Q2 FY18, the segment's EBT increased 34.6% to $67.7 million from $50.3 million in Q2 FY17, while the segment's EBIT surged 34.5% to $70.2 million from $52.2 million in the year ago corresponding period.
For Q2 FY18, RPM's Consumer segment's sales advanced 11.1% to $415.4 million from $373.8 million in Q2 FY17. The segment's organic sales increased 3.0% in the reported quarter, while acquisition growth added 7.3%. The segment's EBT was $45.1 million in Q2 FY18 compared to a loss before income taxes of $140.6 million in Q2 FY17. The segment reported EBIT of $45.2 million compared to a loss before interest and taxes of $140.6 million in the year earlier same quarter.
During Q2 FY18, RPM's sales for the Specialty segment grew 7.4% to $197.1 million versus $183.6 million in Q2 FY17. The segment's organic growth was 2.8%, while acquisitions added 3.8%. The segment's EBT increased 10.5% to $34.4 million in Q2 FY18 from $31.2 million in Q2 FY17, while EBIT improved 10.8% to $34.4 million from $31.0 million in the year earlier comparable quarter.
Cash Flow and Financial Position
For H1 FY18, RPM's cash from operations was $115.2 million compared to $158.7 million in H1 FY17. The Company's capital expenditure totaled $45.3 million in H1 FY18 compared to $48.0 million during H1 FY17.
RPM's total debt was $2.14 billion at November 30, 2017, compared to $1.64 billion at November 30, 2016. At November 30, 2017, the Company's liquidity stood at $971.7 million, including $267.9 million in cash and $703.8 million in long-term committed available credit. RPM's net debt-to-total capitalization ratio was 53.8% compared to 52.8% at November 30, 2016.
Business Outlook
For its Industrial segment, RPM is expecting steady results from its North American commercial construction-related businesses during H2 FY18, aided by higher sales in regions impacted by hurricanes, as well as continued positive results from the Company's businesses serving the oil and gas markets.
In the Consumer segment, RPM is projecting sales growth in the low-to-mid-single-digit range during H2 FY18. Most of this growth is estimated to be organic, as last year's acquisitions annualize their purchase date during Q3 FY18. In the Specialty segment, RPM is anticipating sales growth in the low-single-digit range during H2 FY18. RPM raised its full-year fiscal 2018 EPS guidance to a band of $3.00 to $3.10 per share.
Stock Performance Snapshot
January 16, 2018 - At Tuesday's closing bell, RPM International's stock declined 1.41%, ending the trading session at $52.54.
Volume traded for the day: 930.36 thousand shares, which was above the 3-month average volume of 780.77 thousand shares.
Stock performance in the previous three-month period - up 1.51%; and year-to-date - up 0.23%
After yesterday's close, RPM International's market cap was at $6.74 billion.
Price to Earnings (P/E) ratio was at 20.74.
The stock has a dividend yield of 2.44%.
The stock is part of the Basic Materials sector, categorized under the Specialty Chemicals industry.
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