Upcoming AWS Coverage on Sherwin-Williams Post-Earnings Results

LONDON, UK / ACCESSWIRE / April 17, 2017 / Active Wall St. announces its post-earnings coverage on RPM International Inc. (NYSE: RPM). The Company reported its post-earnings coverage on RPM International Inc. (NYSE: RPM). The Company posted financial results for its third quarter fiscal 2017 on April 06, 2017. The specialty chemicals Company surpassed earnings expectations. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of RPM International's competitors within the Specialty Chemicals space, The Sherwin-Williams Co. (NYSE: SHW), announced on March 29, 2017, that it will release its financial results for the first quarter ended March 31, 2017 prior to the opening of the market on Thursday, April 20, 2017. AWS will be initiating a research report on Sherwin-Williams in the coming days.

Today, AWS is promoting its earnings coverage on RPM; touching on SHW. Get our free coverage by signing up to: http://www.activewallst.com/register/.

Earnings Reviewed

For the three months ended February 28, 2017, RPM's net sales grew 3.4% to $1.02 billion from $988.6 million in Q3 FY16. The Company's revenue number fell short of market expectations of $1.04 billion. RPM's nine-month net sales grew 2.3% to $3.47 billion from $3.39 billion a year ago.

For Q3 FY17, RPM's Income before income taxes (IBT) was $17.0 million, down 22.4% from year-ago IBT of $21.9 million. The Company's consolidated earnings before interest and taxes (EBIT) were $37.1 million for the reported quarter, down 11.9% from year-ago EBIT of $42.1 million. The impairment and restructuring charges reduced both IBT and EBIT by $9.1 million in Q3 FY17.

RPM's Q3 FY17 net income of $11.9 million decreased 35.8% from $18.6 million in Q3 FY16. The Company's earnings per share were $0.09, down 35.7% from the $0.14 reported last year. RPM's earnings on an adjusted basis totaled $0.14 per share, beating analysts' consensus of $0.11 per share. For the first nine months of FY17, RPM's net income of $53.8 million declined 73.4% from net income of $201.8 million in the year ago comparable period. Diluted earnings per share declined 72.7% to $0.41 from $1.50 in the first nine months of FY16.

Segment Sales and Earnings

For Q3 FY17, RPM's Industrial segment's sales increased 5.8% to $521.4 million from $492.7 million in Q3 FY16. The segment's organic sales improved 2.5%, while acquisitions added 4.1%. Foreign currency translation negatively impacted sales by 0.8%. Industrial's IBT was $11.7 million for Q3 FY17 compared to IBT of $0.5 million in Q3 FY16. Industrial segment's EBIT for the reported quarter of $14.6 million was up sharply from last year's EBIT of $2.0 million.

Third-quarter sales in RPM's specialty segment increased 1.8% to $159.7 million from $156.9 million a year ago. Organic sales decreased 0.6% and acquisitions added 3.8%. Foreign currency translation negatively impacted sales by 1.4%. For Q3 FY17, the segment's IBT was $15.0 million, down 31.0% from IBT of $21.7 million in Q3 FY16. Specialty segment's EBIT declined 30.8% to $14.9 million from $21.5 million in the year earlier same quarter.

During Q3 FY17, sales in RPM's consumer segment increased 0.7% to $341.4 million from $339.0 million in Q3 FY16. The segment's organic sales declined 3.6%, while acquisitions added 5.1% during the reported quarter. Foreign currency translation negatively impacted sales by 0.8%. IBT was $29.8 million, down 23.2% from year-ago IBT of $38.8 million. Consumer segment's EBIT declined 22.9% to $29.9 million in Q3 FY17 compared to $38.8 million in Q3 FY16.

Cash Flow and Financial Position

For the first nine months of FY17, RPM generated cash from operations of total $173.5 million compared to $223.8 million in the first nine months of FY16. Capital expenditures during the current nine-month period totaled $80.1 million compared to $54.8 million over the same time in the year ago same period. Cash invested in acquisitions totaled $247 million. Total debt at the end of the first nine months of FY17 was $1.98 billion compared to $1.74 billion a year ago and $1.64 billion at the end of FY16. RPM's net (of cash) debt-to-total capitalization ratio was 58.0%, compared to 55.1% at February 29, 2016, and 50.0% at May 31, 2016. At February 28, 2017, RPM's total liquidity, including cash and long-term committed available credit, was $620.0 million.

"In March 2017, we issued $450 million in bonds to pay down existing balances and free up available borrowings on our revolving credit facility," stated Frank Sullivan, the Company's Chairman and CEO.

Outlook

For Q4 FY17, RPM is forecasting mid-single-digit sales growth in its industrial segment. This is predicated on continued strength in the Company's businesses serving US commercial construction markets and steady progress in Europe. The Company's specialty segment is expected to grow in the low- to mid-single-digit range during the upcoming quarter, driven by a balance between organic and acquisition growth. For its consumer segment, RPM is expecting sales to increase in the mid-single-digit range.

RPM stated that as-reported EPS guidance for the full fiscal year of $1.54 to $1.64 remains unchanged. The Company reduced its as-adjusted EPS guidance by $0.05 per share to $2.57 to $2.67 for the combined third quarter charges for the Restore intangible impairment and the European facility closure.

Stock Performance

At the closing bell, on Thursday, April 13, 2017, RPM International's share price finished the trading session at $49.94, sliding 2.92%. A total volume of 1.14 million shares exchanged hands, which was higher than the 3 months average volume of 647.49 thousand shares. The stock has advanced 5.30% and 1.47% in the last six months and past twelve months, respectively. The stock is trading at a PE ratio of 32.49 and has a dividend yield of 2.40%. At Thursday's closing price, the stock's net capitalization stands at $6.67 billion.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@activewallst.com

Phone number: 1-858-257-3144

Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street