- RPM International reported adjusted EPS of $1.56 for 4Q, matching estimates and up from $1.36 year over year (y/y).
- Reported EPS was $1.40, an increase from $1.18 y/y.
- Net sales remained flat at $2.01 billion, compared to the estimate of $2.01 billion and a slight decline of 0.4% y/y.
- Construction Products Group net sales grew by 1.9% y/y to $762.2 million, just below the estimate of $766.9 million.
- Performance Coatings Group net sales increased by 2% y/y to $365.6 million, short of the $371.5 million estimate.
- Specialty Products Group net sales decreased by 8% y/y to $178.0 million, missing the estimate of $185.2 million.
- Consumer Group net sales fell by 1.9% y/y to $702.5 million but exceeded the $687.1 million estimate.
- Adjusted EBIT amounted to $285.6 million, up 6.6% y/y but below the $333.1 million estimate.
- Construction Products Group adjusted EBIT was $138.5 million, rising 11% y/y, surpassing the $132 million estimate.
- Performance Coatings Group adjusted EBIT was $48.5 million, down 6.2% y/y, missing the $58.8 million estimate.
- Specialty Products Group adjusted EBIT was $10.6 million, a significant decline of 35% y/y, short of the $18.1 million estimate.
- Consumer Group adjusted EBIT was $118.2 million, up 13% y/y, beating the $113.6 million estimate.
- Outlook for fiscal 2025’s first quarter suggests approximately flat sales with adjusted EBIT growth in mid-single digits.
- Fiscal full-year 2025 outlook predicts revenue growth in low single digits and adjusted EBIT growth from mid-single digits to low-double digits.
- Among analysts’ ratings: 7 buys, 8 holds, and 1 sell.
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Rpm International on Smartkarma
Analyst coverage of RPM International on Smartkarma reveals key insights into the company’s performance and growth prospects. Baptista Research, a top independent analyst, published a bullish report titled “RPM International: Investment In Asian Market & Economic Growth & 5 Fundamental Factors Driving Its Performance! – Financial Forecasts.” The report highlights RPM International’s impressive third-quarter fiscal 2024 results, which marked the ninth consecutive quarter of record sales and earnings before interest and taxes (EBIT) results. The company’s operational improvement initiatives under MAP 2025 have been key drivers of this positive momentum, despite lower sales volumes in certain segments. Sales growth was particularly strong in the Performance Coatings Group and Construction Products Group, supported by robust demand from infrastructure and building projects.
A look at Rpm International Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma Smart Scores, RPM International has a mixed long-term outlook. The company scores well in growth potential and dividend strength, with respectable scores of 4 and 3, respectively. This suggests that RPM International is positioned for future expansion and offers a reasonable dividend to investors. However, its value and resilience scores are relatively lower at 2, indicating some challenges in terms of undervaluation and overall stability. Momentum stands at 3, reflecting moderate market momentum for the company.
RPM International, Inc. manufactures and sells specialty chemical products, with a focus on specialty paints, protective coatings, roofing systems, sealants, and adhesives. This indicates a broad product portfolio catering to the maintenance needs of industrial and consumer markets. The company’s Smartkarma Smart Scores reveal a company with promising growth prospects and decent dividend offerings, although there may be areas requiring improvement in terms of value and resilience.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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