RPM sees FY18 EPS $2.85-$2.95, consensus $3.00
The company said, "During FY17, we completed nine acquisitions with annualized sales of approximately $220.0M, which we expect to add 10c per share in incremental EPS in FY18. Also, in FY17, we took steps to reduce overall operating expenses and expect those actions to generate a net 10c per share increase in EPS in FY18. There also were several items that we incurred in Q3 that are not expected to repeat in FY18. They were the Restore product line impairment charge of 3c per share, the European facility closure of 2c per share and higher acquisition-related expenses of 3c per share. Looking to FY18, we expect the industrial segment to benefit from steady economic activity in the North American commercial construction industry, combined with improving results in Europe. Therefore, we expect this segment to grow sales in the low-to-mid-single-digit range during FY18. In the specialty segment, we expect low-single-digit growth driven by FY17 acquisitions and organic growth led by our fluorescent pigment and wood treatment businesses. Partially offsetting positive results in the specialty segment in FY18 will be lost sales in our edible coatings business due to a patent expiration. In the consumer segment, we are expecting mid-single-digit growth due to meaningful contributions from FY17 acquisitions, favorable market conditions, along with new product introductions, market penetration and a stabilization of the Kirker business. Based upon the growth expectations above, we see FY18 EPS $2.85-$2.95. Throughout the year, it will be important to keep in mind the variability of our year-over-year quarterly comparisons, in particular, our tax rate is estimated to be in line with FY17, but may fluctuate quarter-to-quarter.