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Specialty coatings maker RPM's Q3 adjusted profit beats estimates

Overview

US specialty coatings maker's fiscal Q3 sales rose 8.9%, beating analyst expectations

Adjusted diluted EPS for fiscal Q3 increased 62.9%, beating analyst consensus

Company reaffirmed Q4 outlook for mid-single-digit sales growth and low- to high-single-digit adjusted EBIT growth

Outlook

RPM reaffirms Q4 sales growth guidance of mid-single-digits vs prior-year record results

Company expects Q4 adjusted EBIT to rise low- to high-single-digits year-over-year

RPM says geopolitical uncertainty in the Middle East is adding cost and complexity to operations

Result Drivers

VOLUME GROWTH & ACQUISITIONS - Record sales driven by higher volumes, acquisitions, and favorable foreign currency translation, partially offset by soft DIY demand

OPERATIONAL IMPROVEMENTS - MAP initiatives and fixed-cost leverage from higher volumes expanded margins and boosted adjusted EBIT

SEGMENT STRENGTH - Broad-based growth in North America and emerging markets, with high-performance building and infrastructure projects leading gains

Company press release: ID:nBw6kg3SQa

Key Details

MetricBeat/MissActualConsensus Estimate
Q3 SalesBeat$1.61 bln$1.55 bln (13 Analysts)
Q3 Adjusted EPSBeat$0.57$0.35 (15 Analysts)
Q3 EPS$0.40
Q3 Net Income
Attributable to RPM Stockholders
$51.36 mln
Analyst Coverage The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell" The average consensus recommendation for the commodity chemicals peer group is "buy" Wall Street's median 12-month price target for RPM International Inc is $126.00, about 30.3% above its April 7 closing price of $96.71 The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 17 three months ago For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com. (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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