RPM CEO Warns Housing Turnover at 40-Year Low, 'Not Going to Get Better'
RPM is trading near its 52-week low of $92.92 (4.6% above the low).
Summary
RPM's CEO Frank Sullivan delivered a stark housing warning on the Q1 earnings call, stating housing turnover is at a 40-year low and the backdrop is 'not going to get better' until interest and mortgage rates improve. This comes as the company reported record Q1 sales of $2.216B, up 4.8% YoY, with adjusted EPS of $1.98 beating estimates. However, management raised its Q2 raw material inflation forecast to 9%-11% from 6%-8% and narrowed full-year adjusted EBITDA growth guidance to mid-single digits from 5%-10%. The Construction Products Group saw adjusted EBITDA fall 9.7% due to weaker volumes and raw material inflation, while Performance Coatings posted record sales with 18.2% EBITDA growth. The stock is trading near its 52-week low despite the earnings beat, reflecting the cautious housing outlook.
At the time of this announcement, RPM was trading at $97.23 on NYSE in the Manufacturing sector, with a market capitalization of approximately $12.4B. The 52-week trading range was $92.92 to $121.78. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Benzinga.