RPM International Inc. (NYSE: RPM) reported its financial results for the fiscal third quarter on Wednesday that topped analysts’ estimates for earnings and revenue, despite the COVID-19 related disruptions.
RPM shares slid 1% in premarket trading on Wednesday and lost another 4% on market open to trade at an intraday low of £65.26 per share. In comparison, the stock had started the year 2021 at a slightly lower £64.75 per share.
RPM International’s Q3 financial results versus analysts’ estimates
RPM International reported £27.80 million of net income in the third quarter that represents a massive 222.6% annualised growth. On a per-share basis, the American multinational earned 21.10 pence per share in Q3. Adjusted for one-time items, its per-share earnings came in at 27.65 pence per share.
The Medina-based company valued its revenue in the recent quarter at £920 million that translates to a year over year increase of 8.1%. In comparison, experts had forecast the company to post £870 million of revenue in the third quarter. Their estimate for adjusted per-share earnings stood at a lower 24.74 pence per share. In the prior quarter (Q2), RPM had registered £1.09 billion of sales.
RPM International further added on Wednesday that it generated £474.36 million of cash from operations in the first three quarters combined. For the full financial year, the manufacturer of speciality coatings, sealants and building materials now forecasts double-digit growth in both sales and adjusted earnings before interest and taxes (EBIT).
Chief Executive Frank Sullivan’s comments on Wednesday
CEO Frank Sullivan commented on the earnings report on Wednesday and said:
“The third quarter is our seasonally low quarter and historically generates only 5% to 10% of our annual earnings,
