RPM International Beats Q2 Earnings and Revenue Estimates

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Quarterly Results Exceed Expectations

RPM International (RPM) has reported quarterly earnings of $1.39 per share, exceeding the Zacks Consensus Estimate of $1.35 per share. This represents an earnings surprise of 2.96%. The company’s revenue for the quarter ended November 2024 was $1.85 billion, surpassing the Zacks Consensus Estimate by 3.70%.

Historical Earnings Performance

Over the last four quarters, RPM International has consistently exceeded consensus EPS estimates, delivering a surprise of 2.96% in Q4 and 4.55% in the previous quarter. This trend demonstrates the company’s ability to outperform expectations.

Revenue Growth Outpaces Estimates

RPM International’s revenue growth has been consistent over the last four quarters, with the company surpassing consensus revenue estimates three times. The latest quarterly report shows a significant increase in revenue, exceeding estimates by 3.70%.

What’s Next for RPM International?

Despite beating earnings estimates, RPM International shares have lost about 2.1% since the beginning of the year compared to the S&P 500’s gain of 1.6%. Investors are eager to know what lies ahead for the stock.

Earnings Outlook and Estimate Revisions

The company’s earnings outlook is a crucial indicator of future performance. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. By tracking these revisions or using a reliable rating tool like the Zacks Rank, investors can gain valuable insights into the stock’s potential.

Current Zacks Rank and Estimate Revisions

Ahead of this earnings release, the estimate revisions trend for RPM International was mixed. However, the current status translates into a Zacks Rank #3 (Hold) for the stock, indicating that shares are expected to perform in line with the market in the near future.

Industry Outlook and Impact on Performance

The outlook for the Paints and Related Products industry can significantly impact RPM International’s performance. The Zacks Industry Rank currently places this industry in the top 35% of over 250 industries, indicating a strong potential for growth.

KB Home’s Q4 Earnings Report Expected Soon

KB Home (KBH), another stock in the broader Zacks Construction sector, is expected to report its Q4 earnings results on January 13. The company is forecasted to post quarterly earnings of $2.45 per share, representing a year-over-year change of +32.4%. Revenues are expected to be $1.99 billion, up 19% from the previous year.