Shares of RPM International (RPM) went into overdrive Monday after the company beat Wall Street earnings estimates.
A maker of specialty coatings, sealants and building materials, RPM's stock price shot up 8.08% to $67.32 after posting a quarterly earnings surprise of 8.77%, according to Zacks Investment Research.
RPM reported earnings of $1.24 a share, compared to the $1.14 a share estimate of analysts surveyed by Zacks. Per-share earnings rose 21.6% from the same period last year, when it rang in at $1.02 a share.
RPM's revenue rose 2.8% in the company's fiscal fourth quarter to $1.6 billion, just missing analyst estimates by 0.19%, according to Zacks.
The sealant and building materials giant notched a 51.5% increase in earnings before interest and taxes (EBIT), which rose to $204.6 million from $135 million a year ago.
Looking ahead, RPM is projecting 2020 growth in line with analysts' estimates. RPM is estimating sales growth at 2.5% to 4% in 2020, a 20% to 24% jump in earnings before interest and taxes, and adjusted and diluted earnings per share of $3.30-$3.42 a share, the company said in its quarterly earnings press release.
"We are very pleased with our significant earnings leverage for the quarter, which was bolstered by our 2020 MAP to Growth operating improvement plan, the benefits of which are beginning to be realized," said stated RPM chairman and CEO Frank C. Sullivan, in a statement.