NYSE$RPM

RPM International Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported record sales and mixed earnings due to supply chain challenges and inflation.

RPM International Inc. reported record second-quarter sales of $1.64 billion, a 10.3% increase over the prior year. Net income decreased by 2.2% to $124.9 million, and diluted EPS decreased by 2.0% to $0.96. Adjusted diluted EPS was $0.79, and adjusted EBIT was $157.3 million, down 21.0% from the prior year.

  • Record second-quarter sales of $1.64 billion, up 10.3% year-over-year.
  • Net income decreased 2.2% to $124.9 million.
  • Diluted EPS decreased 2.0% to $0.96.
  • Adjusted diluted EPS was $0.79, a decrease of 25.5% compared to the prior year.

Headline financials

Total Revenue

$1.64B

Previous: $1.49B+10.3%
EPS (adj)

$0.79

Previous: $1.06-25.5%
Free Cash Flow

$125M

Previous: $128M-2.2%
Net Income

$125M

Previous: $128M-2.2%
Operating Income

$183M

Previous: $182M+0.7%
Gross Profit

$583M

Previous: $586M-0.6%
Cash & Equivalents

$193M

Previous: $273M-29.3%
Total Assets

$6.25B

Previous: $5.79B+8.0%

Revenue & EPS history

RPM · Revenue · Quarterly

$1.64B

Q2 2022+10.3%vs Q2 2021
Beat estimate in 13 of 16 quarters(81%)
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 double-digit consolidated sales growth in the fiscal 2022 third quarter but anticipates a decline in adjusted EBIT of 5% to 15% versus the prior year.

Tailwinds

  • Robust demand for paints, coatings, sealants and other building materials is expected to continue.
  • High-double-digit sales growth is anticipated in the CPG and PCG segments.
  • Margin accretion is expected in CPG and PCG segments.
  • SPG sales are expected to be up low-double digits.
  • Consumer Group sales are anticipated to increase by low-single digits.

Headwinds

  • Supply chain challenges and raw material shortages have persisted.
  • Disruptions from the Covid-19 Omicron variant are impacting operations and the supplier base.
  • These factors are expected to put pressure on revenues and productivity.
  • Consolidated adjusted EBIT is expected to decrease 5% to 15%.
  • Earnings will be affected by ongoing raw material, freight, and wage inflation.

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 Q2 2022

Historical avgQ2 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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