RPM, Apogee Fall After Weak Guidance

January 07, 2025

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Good morning. It's January 7th, and today we’ll look at the latest on RPM International, Apogee Enterprises, and NVIDIA.

Industrial Metals

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Futures 📈

What to Watch

Earnings Calendar:

  • RPM International [RPM]: Pre-market

  • Apogee Enterprises [APOG]: Pre-market

  • Cal-Maine Foods [CALM]: Aftermarket

  • AZZ  [AZZ]: Aftermarket

  • AAR [AIR]: Aftermarket

Economic Reports:

  • U.S. trade deficit [Nov]: 8:30 a.m.

  • ISM services [Dec]: 10:00 a.m.

  • Job openings [Nov]: 10:00 a.m.

Paints & Coatings

Winter Challenges Hit RPM's Forecast Despite Record Q2 Performance

RPM International Inc. reported stronger-than-expected earnings and revenue for its fiscal second quarter, yet its stock is falling over 3% in premarket trading due to a subdued outlook for the coming quarter.

The company’s adjusted earnings per share of $1.39 beat the $1.34 consensus estimate, while revenue rose 3% year-over-year to $1.85 billion, surpassing forecasts of $1.79 billion.

Despite these results, RPM warned of flat sales for the third quarter and a low-single-digit fluctuation in adjusted EBIT, leaving investors cautious. CEO Frank C. Sullivan acknowledged progress in operational initiatives but pointed to harsher winter weather as a significant headwind compared to last year.

All four business segments recorded positive sales growth in Q2, with the Construction Products Group leading at a 4.3% increase to $690.1 million.

The company credited its MAP 2025 improvement program for achieving a record adjusted EBIT of $255.1 million, a 7.7% increase year-over-year. Strong cash flow also enabled RPM to reduce its debt by $226.5 million over the past year.

While narrowing its full-year adjusted EBIT growth forecast to 6-10%, RPM's tempered third-quarter outlook reflects ongoing economic uncertainties and seasonal challenges.

Architectural Products

Apogee Reports Strong Q3, Shares Dip on Weak Guidance

Apogee Enterprises (NASDAQ: APOG) delivered better-than-expected third-quarter results today but disappointed investors with a reduced full-year earnings outlook, which is why its shares are falling 1.6% in premarket trading.

The architectural products and services company’s adjusted earnings per share (EPS) of $1.19 was better than analyst predictions of $1.11. Revenue was slightly up year-on-year by 0.5%, reaching $341.3 million and beating estimates of $330.6 million.

However, the company now expects full-year adjusted EPS to hit the lower end of its previous range of $4.90 to $5.20, below the $5.08 analyst consensus. Apogee also forecasts a 5% decline in net sales for fiscal 2025, including a $30 million contribution from its recent $242 million acquisition of UW Solutions, completed in November.

CEO Ty R. Silberhorn emphasized the company’s focus on strengthening its operating foundation and positioning for long-term growth amid ongoing market softness.

In Q3, Apogee’s adjusted operating margin dipped to 10.4% from 11.1% the prior year due to lower volumes and an unfavorable product mix. The company maintained its fiscal 2025 capital expenditure forecast of $40-$45 million and an effective tax rate of approximately 24.5%.

While the UW Solutions acquisition is expected to support future growth, it will slightly dilute earnings for fiscal 2025, further weighing on investor sentiment.

Technology

The NEXT Trillion Dollar Company?

This company just signed a MASSIVE deal with Apple.

It gets their AI tech in Apple’s iPhones and iMacs until 2040!

But it goes beyond that.

The company is getting its tech into products by Nvidia, Google, and Samsung too.

Its AI tech is so crucial…

Nvidia is actually buying up the stock too.

They’ve invested more in this one company than any other… nearly $150 million.

Is this stock the next Nvidia… which has gone up 81,700% over the last 20 years?

Semiconductors

NVIDIA Unveils Groundbreaking AI Tech at CES 2025

At CES 2025 in Las Vegas, NVIDIA founder Jensen Huang unveiled the company’s latest innovation: the GeForce RTX 50 Series GPUs, designed for gamers, creators, and developers. The new processors, powered by Nvidia's next-generation Blackwell AI chip, promise significant advancements in AI-driven rendering and real-time graphics.

In his keynote, Huang highlighted the technology’s ability to deliver unparalleled detail, demonstrating how AI enhances rendering precision. Huang called it Nvidia's most significant innovation since introducing programmable shading 25 years ago.

The GPUs incorporate RTX Neural Shaders, which use AI to render game characters in extraordinary detail, addressing the challenges of creating lifelike digital humans. Additionally, NVIDIA introduced AI-powered “autonomous characters” capable of adapting strategies and creating dynamic gaming experiences.

NVIDIA’s stock rose 3.4% ahead of the announcement, reaching a new high, as AI remains a major market driver despite concerns about overvaluation. It is continuing to rise by a further 2% in premarket trade today.

Huang’s presentation also signaled NVIDIA’s intent to maintain leadership in graphics and AI innovation, joining other CES participants like AMD, Google, and Samsung in showcasing AI tools aimed at revolutionizing entertainment and content creation.

Movers and Shakers

MultiSensor AI Holdings, Inc. [MSAI] - Last Close: $2.00

MultiSensor AI Holdings, Inc. (MSAI) is part of the industrial AI-driven condition-based maintenance and process solution industry.

The company announced a series of executive team changes aimed at rapid growth yesterday, which is causing its shares to rise 96% in premarket trade this morning.

My Take: This is a tiny stock that is already down nearly 35% in the last year and has been struggling with profitability. Be cautious of high volatility while investing here.

Getty Images Holdings, Inc. [GETY] - Last Close: $2.57

Getty Images Holdings Inc. (GETY) and Shutterstock Inc. (SSTK) have merged to form a leading visual content company valued at approximately $3.7 billion.

Following the announcement, Getty Images' stock is surging over 50% in premarket trading.

My Take: Getty Images and Shutterstock represent a significant consolidation in the visual content market. The combined entity will need to navigate potential antitrust scrutiny, so it might be best to wait and watch before investing here.

Immuneering Corporation [IMRX] - Last Close: $2.36

Immuneering Corporation (IMRX) is a clinical-stage oncology company focused on developing therapies for cancer.

The company has announced positive data updates from three pancreatic cancer arms of its ongoing Phase 2a trial for IMM-1-104. This is causing the stock to nearly double before the opening bell today.

My Take: Early results are promising, however things might change as clinical trials progress, so be sure to hedge your bets if you wish to invest in this stock.

Gold

A remarkable discovery in Ontario has unearthed millions of ounces of high-grade, visible gold—positioned just below the surface for easy and cost-efficient extraction.

With gold prices soaring toward record highs, the timing couldn’t be better. This find is already making waves in the investment world, with analysts projecting a potential 211% upside.

Could this be the breakout opportunity you’ve been waiting for?

Don’t miss your chance to strike gold.

Everything Else

  • A new CFPB rule removes unpaid medical bills from credit reports to protect consumers.

  • dLocal sets its sights on UK merchants with a new FCA payment institution approval.

  • Mixed eurozone inflation data leaves the ECB's 2025 policy direction uncertain.

  • TTTech Auto joins NXP in a €625 million deal to transform vehicle autonomy and connectivity.

  • Southwest Airlines secures $871 million in proceeds from leasing 36 aircraft under short-term deals.

  • Oilfield services firm Flowco targets a $2 billion valuation with its planned stock market debut.

That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.

Best Regards,

— Adam Garcia
Elite Trade Club

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