RPM Set for Slight Fiscal Q1 Miss Due to Material Supplies Impact, UBS Securities Says

MT Newswires Live08-25 00:37

RPM International (RPM) is likely to post a "slight miss" for fiscal Q1 due to impact from material supplies, which held back some volumes and could mean slightly higher raw material costs in the August and November quarters, UBS Securities said in a note Monday.

The brokerage now expects fiscal Q1 volumes to rise 0.6% year over year versus consensus of 1.3%, with total sales forecast to grow 4.3% compared with 5.2% consensus.

UBS also expects EBITDA and EPS of $407 million and $1.92, compared with consensus of $408 million and $1.96, respectively.

Analysts said the Q1 impacts are localized to the quarter and are expected to be offset by easier comps in fiscal Q2.

UBS Securities maintained its buy rating with a $142 price target.

Shares of RPM were down 2.2% in Monday trading.

Price: 106.24, Change: -2.39, Percent Change: -2.20

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