NYSE$RPM

RPM International Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

RPM reported strong fourth-quarter results driven by sales growth and margin improvements.

RPM International Inc. reported a 19.6% increase in net sales to $1.74 billion for the fiscal 2021 fourth quarter. Diluted EPS increased 42.9% to $1.20, and adjusted diluted EPS increased 13.3% to $1.28. The company successfully completed its MAP to Growth operating improvement program, exceeding its original target by $30 million in annualized savings.

  • Net sales increased by 19.6% to $1.74 billion.
  • Diluted EPS increased by 42.9% to $1.20.
  • Adjusted diluted EPS increased by 13.3% to $1.28.
  • MAP to Growth operating improvement program was successfully completed, exceeding savings target.

Headline financials

Total Revenue

$1.74B

Previous: $1.46B+19.5%
EPS (adj)

$1.28

Previous: $1.13+13.3%
Net Income

$156M

Previous: $109M+42.8%
Operating Income

$215M

Previous: $170M+26.6%
Gross Profit

$693M

Previous: $554M+25.2%
Cash & Equivalents

$247M

Previous: $233M+5.7%
Total Assets

$6.25B

Previous: $5.63B+11.0%

Revenue & EPS history

RPM · Revenue · Quarterly

$1.74B

Q4 2021+19.5%vs Q4 2020
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

RPM anticipates first-quarter consolidated sales to increase in the low- to mid-single digits. Adjusted EBIT is expected to decrease 25% to 30% due to anticipated decline in Consumer Group.

Tailwinds

  • Construction Products Group and Performance Coatings Group are expected to experience sales increases in the high-single or low-double digits.
  • The Specialty Products Group is expected to generate double-digit sales increases.
  • Global economies are expected to continue improving.
  • Consumer Group’s fiscal 2022 first-quarter sales are expected to be above the pre-pandemic record.
  • Adjusted EBIT is expected to grow in three of four segments.

Headwinds

  • Supply constraints have slowed production in some product categories.
  • Macroeconomic factors are creating inflationary and supply pressures.
  • Consumer Group sales are expected to decline double digits due to difficult comparisons to the prior year.
  • First-quarter consolidated adjusted EBIT is expected to decrease 25% to 30%.
  • Consumer Group is facing several margin challenges including selling price negotiations, insufficient supply of raw materials and outsourced production.

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 Q4 2021

Historical avgQ4 2021

-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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