NYSE$RPM

RPM International Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

RPM reported record results, driven by strong sales and adjusted EBIT growth.

RPM International Inc. reported record fourth-quarter net sales of $1.98 billion, a 13.7% increase year-over-year. Net income increased 27.4% to $199.0 million, with diluted EPS at $1.54 and adjusted diluted EPS at $1.42. The company's performance was driven by all four segments, each generating record sales.

  • Net sales increased 13.7% to a record $1.98 billion.
  • Net income increased 27.4% to a record $199.0 million.
  • Diluted EPS was a record $1.54, and adjusted diluted EPS was a record $1.42.
  • EBIT increased 17.1% to a record $251.7 million, and adjusted EBIT increased 11.7% to a record $263.7 million.

Headline financials

Total Revenue

$1.98B

Previous: $1.74B+13.8%
EPS (adj)

$1.42

Previous: $1.28+10.9%
Net Income

$199M

Previous: $156M+27.4%
Operating Income

$252M

Previous: $215M+17.1%
Gross Profit

$739M

Previous: $693M+6.5%
Cash & Equivalents

$202M

Previous: $247M-18.3%
Total Assets

$6.71B

Previous: $6.25B+7.3%

Revenue & EPS history

RPM · Revenue · Quarterly

$1.98B

Q4 2022+13.8%vs Q4 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

For the first quarter of fiscal 2023, RPM expects sales growth in the mid-teens and adjusted EBIT growth of 20% to 25%.

Tailwinds

  • Anticipates sales growth in the teens in all four of its operating segments.
  • Expects to continue implementing price increases as needed.
  • Improving operational efficiencies in order to minimize cost pressures.
  • Demand for products and services will remain strong.
  • Making strategic investments in organic growth initiatives.

Headwinds

  • Strengthening U.S. dollar is expected to be a headwind impacting the translation of RPM’s international results.
  • Significant cost increases to continue for certain raw materials, labor and packaging.
  • Anticipates continued higher costs from unreliable bulk transportation, which creates production inefficiencies.
  • Fuel surcharges, which are being driven by high energy prices that have been exacerbated by the conflict in Ukraine.
  • Cost pressures are expected to disproportionately affect the Consumer segment.

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 2022

Historical avgQ4 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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