Sluggish Sales Hit RPM International

Investors have looked for signs of an economic slowdown, and a common theme this earnings season will be whether companies are able to maintain sales growth at the pace shareholders anticipated. For RPM International (NYSE: RPM), the coatings and sealants it sells have implications for both the consumer and industrial economies, and so many investors are watching the company as a gauge of conditions in those areas. Moreover, RPM has made huge efforts to restructure in order to make the most of its opportunities.

Coming into Wednesday's fiscal first-quarter financial report, RPM shareholders wanted to see modest sales growth along with encouraging trends on the earnings front. RPM's earnings were stronger than expected, and the company made significant progress with its strategic plan. Yet many investors seemed to focus on shortfalls in sales in some key areas, drawing conclusions about a possible slowdown both for RPM and the broader economy.

RPM International's fiscal first-quarter results left some shareholders wanting more. Revenue climbed just 1% to $1.47 billion, which was slower than the nearly 3% growth rate that most of those following the stock had wanted to see. However, net income soared by more than 50% to $106.5 million. After accounting for some one-time items, adjusted earnings of $0.95 per share topped the consensus forecast among investors by $0.03 per share.

Source Fool.com