NYSE$RPM

RPM International Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

RPM's Q4 2023 earnings were released, showcasing record sales and adjusted EBIT, driven by MAP 2025 initiatives amidst challenging market conditions.

RPM reported record fourth-quarter net sales of $2.02 billion, a 1.6% increase year-over-year. Net income was $151.4 million, with diluted EPS at $1.18. Adjusted diluted EPS reached $1.36, and adjusted EBIT increased by 1.5% to a record $267.8 million. The company's cash flow from operations hit a record $314.1 million, driven by inventory normalization initiatives.

  • Record fourth-quarter net sales of $2.02 billion, up 1.6% year-over-year.
  • Net income for the quarter was $151.4 million, with diluted EPS at $1.18.
  • Adjusted diluted EPS was $1.36, and adjusted EBIT increased by 1.5% to a record $267.8 million.
  • Record fourth-quarter cash provided by operating activities of $314.1 million.

Headline financials

Total Revenue

$2.02B

Previous: $1.98B+1.6%
EPS (adj)

$1.36

Previous: $1.42-4.2%
Net Income

$151M

Previous: $199M-23.9%
Operating Income

$236M

Previous: $252M-6.1%
Gross Profit

$775M

Previous: $739M+5.0%
Cash & Equivalents

$216M

Previous: $202M+7.0%
Total Assets

$6.78B

Previous: $6.71B+1.1%

Revenue & EPS history

RPM · Revenue · Quarterly

$2.02B

Q4 2023+1.6%vs Q4 2022
Beat estimate in 6 of 15 quarters(40%)
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 continued positive trends in the first quarter of fiscal year 2024, including increasing demand for engineered solutions, ongoing benefits from MAP 2025 initiatives, and moderating profitability headwinds. The company expects these factors to result in a seventh consecutive quarter of record sales and adjusted EBIT, along with improved cash flow from operations. For the full fiscal year 2024, RPM expects mid-single-digit sales growth and low-double-digit to mid-teen adjusted EBIT growth.

Tailwinds

  • Increasing demand for engineered solutions serving infrastructure and reshoring projects.
  • Continued benefits from MAP 2025 initiatives.
  • Moderating headwinds from foreign currency translation.
  • Customer destocking expected to moderate.
  • Material cost inflation expected to moderate.

Headwinds

  • Challenging market conditions in some businesses.
  • Volatile demand trends.
  • Uncertainty in commercial construction.
  • Potential for economic recession.
  • Difficult comparisons in Performance Coatings 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 Q4 2023

Historical avgQ4 2023

-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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