Notice RPM International Stock?

(RTTNews) - Shares of RPM International Inc. (RPM) touched a new high of $75.62 on November 8. The company sells high-performance coatings, sealants and specialty chemicals, mainly for maintenance and improvement applications.

With a 46-year track record of continuously increasing cash dividends, RPM currently pays a dividend of $0.36 per share with a yield of 1.93% vs. the 0.65% yield of the Paints and Related Products industry, and higher than the 1.85% yield of S&P 500.

Last year, the company launched a MAP to Growth initiative to reduce business complexity and save $290 million by January 1, 2021. This initiative is divided into three waves, with Wave 1 largely completed in FY19, and wave savings exceeding initial expectations.

Q1 Results

Earlier in October, RPM reported first-quarter net income of $106.2 million or $0.82 per share verus $69.8 million or $0.52 per share last year.

Excluding the restructuring and other charges, as well as investment gains, adjusted earnings grew 25% to $0.95 per share from the previous year's earnings of $0.76 per share.

Net sales amounted to a record $1.47 billion versus $1.46 billion generated a year ago.

Q2, FY20 Outlook

While reporting Q1 results, RPM International reaffirmed its adjusted earnings and sales growth outlook for the full-year 2020 and issued financial outlook for the second quarter.

For fiscal 2020, the company said it continues to project adjusted earnings in a range of $3.30 - $3.42 per share, and revenue growth on the low end of its previously disclosed range of 2.5% - 4%.

On average, 14 analysts polled by Thomson Reuters expect the company to report earnings of $3.38 per share on sales growth of 2.40% to $5.7 billion for the year. Analysts' estimates typically exclude certain special items.

For the second quarter, the company said it sees adjusted earnings in the low- to mid-70-cent range on sales growth of 2% - 3%. The Street is currently looking for earnings of $0.73 per share on sales of $1.4 billion for the quarter.

Looking Ahead...

Looking forward to the company's third and fourth quarter, the company said, historically, its third quarter provides the most modest results each year because it falls during the winter months of December through February, when painting and construction activity slows due to cold and snowy weather.

However, the fourth-quarter results are generally stronger as work begins to accelerate on painting and construction projects.