NYSE$RPM
RPM International Inc · Q3 2020 earnings
Q3 2020 earnings · · Investor relations
Briefing
Reported strong financial results driven by the MAP to Growth operating improvement program.
RPM International Inc. reported a 2.9% increase in net sales to $1.17 billion for the third quarter of fiscal 2020. Adjusted diluted EPS increased by 76.9% to $0.23. The company's financial guidance and stock buyback program have been suspended due to uncertainty created by COVID-19.
- Third-quarter adjusted diluted EPS increased 76.9% over the prior-year quarter and exceeded guidance.
- Third-quarter net sales were $1.17 billion, an increase of 2.9% over the prior year.
- Third-quarter net income was $11.9 million.
- Cash provided by operating activities increased $236 million year over year.
Headline financials
Revenue & EPS history
RPM · Revenue · Quarterly
$1.17B
Revenue by segment
RPM · $1.18B total across 3 segments · Q2 2019
- Construction Products$467M—39.5%
- Consumer$425M—35.9%
- Performance Coatings$292M—24.6%
Forward guidance
Due to the disruption and uncertainty caused by COVID-19, RPM expects its financial results to be impacted and anticipates consolidated fourth-quarter revenue to be down 10% to 15% year over year. The company has withdrawn its prior earnings guidance for the fourth quarter and full year of fiscal 2020.
Tailwinds
- The fourth quarter was off to a good start in March, with consolidated sales up approximately 5% over the prior year.
- Many of RPM's products are used for construction, maintenance, and repair projects, which are deemed essential in many cases and are relatively recession resistant.
- A large number of RPM's North American customers, such as those in construction and DIY home and hardware retail, are also considered essential and currently remain open for business.
- With people spending more time in their homes, there is potential for increased activity in DIY projects.
- Demand is strong for RPM's professional and consumer cleaning and disinfectant brands, some of which are effective against Coronavirus.
Headwinds
- RPM expects its financial results to be impacted by the disruption and uncertainty COVID-19 is having on the global economy.
- The financial impact to the company's results cannot be reasonably estimated, but could be material.
- COVID-19 is disrupting RPM's ability to implement new initiatives under its restructuring program.
- The company will be extending the timeline for achieving its MAP to Growth goals.
- The company anticipates that its consolidated fourth-quarter revenue will be down 10% to 15% year over year.
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 Q3 2020
-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
| Quarter | Report date | Reaction (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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