NYSE$RPM

RPM International Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

RPM's first quarter results for fiscal year 2022 were reported.

RPM International Inc. reported a record $1.65 billion in consolidated sales, a 2.7% increase compared to the previous year. Net income was $134.6 million, with diluted EPS at $1.04, a decrease of 25% compared to the prior-year period. The results were impacted by supply chain challenges, inflation, and a tough comparison for the Consumer Group.

  • Consolidated sales increased to a record $1.65 billion.
  • Net income was $134.6 million and diluted EPS was $1.04, decreasing 25% compared to prior-year period.
  • Consolidated EBIT decreased 21.4% and adjusted EBIT declined 23.2% due to supply chain challenges, inflation and tough comparison for Consumer Group.
  • Three of four operating segments generated solid sales and adjusted EBIT growth.

Headline financials

Total Revenue

$1.65B

Previous: $1.61B+2.7%
EPS (adj)

$1.08

Previous: $1.44-25.0%
Free Cash Flow

$135M

Previous: $181M-25.5%
Net Income

$135M

Previous: $181M-25.5%
Operating Income

$192M

Previous: $252M-23.8%
Gross Profit

$613M

Previous: $654M-6.2%
Cash & Equivalents

$213M

Previous: $252M-15.3%
Total Assets

$6.17B

Previous: $5.69B+8.3%

Revenue & EPS history

RPM · Revenue · Quarterly

$1.65B

Q1 2022+2.7%vs Q1 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

RPM · $1.18B total across 3 segments · Q2 2019

  • Construction Products
    $467M
  • Consumer
    $425M
  • Performance Coatings
    $292M

Forward guidance

The company expects raw material, freight, and wage inflation to persist, along with raw material shortages and supply chain challenges. Anticipates these factors to be partially offset by price increases, operational improvements, and additional manufacturing capacity. Expects second-quarter consolidated sales to increase in the mid-single digits.

Tailwinds

  • Construction Products Group, Performance Coatings Group and Specialty Products Group are anticipating double-digit sales growth.
  • Expects price increases to partially offset inflation.
  • Expects operational improvements to partially offset inflation.
  • Expects additional manufacturing capacity to partially offset inflation.
  • Will maintain the positive momentum created by our operating improvement program.

Headwinds

  • Expect raw material, freight and wage inflation to persist
  • Expect raw material shortages and supply chain challenges to persist.
  • Face another difficult comparison to the prior year when consolidated adjusted EBIT increased 29.7%
  • Consumer Group is anticipating another double-digit decrease in sales due to continued raw material shortages and a difficult comparison to the prior-year period.
  • Expect that the second-quarter results will be directionally similar to the first quarter, with significant year-over-year declines again in our Consumer Group

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-0.1%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+1.7%

Avg return

30 days after

51%

35 / 68 earnings

Positive

+12.5%

Q4 2023

Best reaction

-11.7%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-0.7%+13.2%+4.2%
Q2 2026+1.7%+6.5%+11.6%
Q1 2026-0.8%-3.1%-7.3%
Q4 2025-2.4%-1.2%+10.1%
Q3 2025-9.1%-2.2%+3.9%
Q2 2025+1.8%+0.0%+2.6%
Q1 2025+6.0%+7.6%+5.3%
Q4 2024+6.0%+7.9%+4.9%
Q3 2024-4.7%-4.6%-7.8%
Q2 2024-2.2%-1.3%-0.6%
Q1 2024+6.3%+5.4%+3.8%
Q4 2023+12.5%+10.4%+6.6%
Q3 2023-2.6%-2.6%-3.7%
Q2 2023-11.7%-11.4%-6.8%
Q1 2023+5.6%+1.3%+3.3%
Q4 2022+0.4%+5.0%+7.6%
Q3 2022+4.0%+3.8%+1.5%
Q2 2022-2.8%-5.3%-11.0%
Q1 2022+0.4%+0.4%+12.9%
Q4 2021-3.7%-1.8%-5.4%
Q3 2021-2.7%-2.4%+3.3%
Q2 2021-1.2%-1.0%-2.9%
Q1 2021+2.8%+4.5%+9.7%
Q4 2020+2.1%+2.4%+7.8%
Q3 2020+5.4%+3.7%+10.2%
Q2 2020-1.8%-1.0%+0.4%
Q1 2020+0.3%+1.3%+8.8%
Q4 2019+5.6%+7.9%+9.5%
Q3 2019+1.0%+1.0%+3.0%
Q2 2019-3.8%+0.7%+4.4%
Q1 2019-6.3%-5.3%-2.3%
Q4 2018+1.4%+2.4%+5.1%
Q3 2018-1.2%+2.2%+2.3%
Q2 2018+1.9%+0.1%-4.6%
Q1 2018-2.4%-3.0%-0.0%
Q4 2017-3.9%-4.6%-11.0%
Q3 2017-2.6%-3.4%-2.0%
Q2 2017-3.5%-4.9%-5.6%
Q1 2017-4.8%-6.9%-10.6%
Q4 2016+6.2%+4.5%+6.5%
Q3 2016+1.3%
Q2 2016-3.0%
Q1 2016+0.8%
Q4 2015+0.6%
Q3 2015-1.9%
Q2 2015-4.5%
Q1 2015-3.6%
Q4 2014+2.5%
Q3 2014+2.1%
Q2 2014+2.0%
Q1 2014+3.8%
Q4 2013+3.7%
Q3 2013-2.2%
Q2 2013+1.1%
Q1 2013+2.3%
Q4 2012-2.4%
Q3 2012-0.9%
Q2 2012-6.4%
Q1 2012+1.6%
Q4 2009-2.8%
Q4 2011-2.8%
Q3 2010-1.2%
Q3 2011-1.2%
Q2 2010+2.1%
Q2 2011+2.1%
Q1 2011+1.4%
Q4 2010+1.4%
Q1 2010+1.4%

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