’Reddit is built for this moment’ - Stock soars on crushed earnings
MEDINA, Ohio - RPM International Inc. (NYSE:RPM) reported better-than-expected second quarter earnings and revenue on Tuesday, but its stock fell as the company's outlook disappointed.
The specialty coatings and sealants maker posted adjusted earnings per share of $1.39 for the quarter ended November 30, beating the analyst consensus of $1.34. Revenue rose 3% YoY to $1.85 billion, also topping estimates of $1.79 billion.
However, RPM's shares dropped 2.2% following the report, as investors focused on the company's guidance. For the fiscal third quarter, RPM expects flat sales compared to the prior year and adjusted EBIT to grow or decline by low-single-digits.
"We remain focused on things within our control in a mixed economic environment," said Frank C. Sullivan, RPM chairman and CEO. He noted that progress on the company's initiatives is being offset by winter weather that is "meaningfully harsher than the prior year."
For the second quarter, RPM said all four of its business segments generated positive sales volume growth. The Construction Products Group led the way with a 4.3% sales increase to $690.1 million.
The company highlighted its MAP 2025 operating improvement initiatives, which helped drive record adjusted EBIT of $255.1 million, up 7.7% YoY. RPM also noted strong cash flow, which allowed it to pay down $226.5 million in debt over the past 12 months.
Looking ahead, RPM narrowed its full-year fiscal 2025 adjusted EBIT growth outlook to 6-10%, compared to its previous forecast of mid-single-digit to low-double-digit growth.
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