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Interpreting RPM International (RPM) International Revenue Trends

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Have you looked into how RPM International (RPM - Free Report) performed internationally during the quarter ending August 2025? Considering the widespread global presence of this specialty chemicals company, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.

In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.

International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.

While delving into RPM's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.

The recent quarter saw the company's total revenue reaching $2.11 billion, marking an improvement of 7.4% from the prior-year quarter. Next, we'll examine the breakdown of RPM's revenue from abroad to comprehend the significance of its international presence.

Unveiling Trends in RPM's International Revenues

Asia Pacific generated $39.43 million in revenues for the company in the last quarter, constituting 1.9% of the total. This represented a surprise of -11.6% compared to the $44.6 million projected by Wall Street analysts. Comparatively, in the previous quarter, Asia Pacific accounted for $37.9 million (1.8%), and in the year-ago quarter, it contributed $39.39 million (2%) to the total revenue.

Of the total revenue, $148.82 million came from Canada during the last fiscal quarter, accounting for 7%. This represented a surprise of +4.51% as analysts had expected the region to contribute $142.4 million to the total revenue. In comparison, the region contributed $148.82 million, or 7.2%, and $147.19 million, or 7.5%, to total revenue in the previous and year-ago quarters, respectively.

Europe accounted for 14.8% of the company's total revenue during the quarter, translating to $312.36 million. Revenues from this region represented a surprise of +7.01%, with Wall Street analysts collectively expecting $291.9 million. When compared to the preceding quarter and the same quarter in the previous year, Europe contributed $302.71 million (14.5%) and $258.77 million (13.1%) to the total revenue, respectively.

During the quarter, Latin America contributed $70.92 million in revenue, making up 3.4% of the total revenue. When compared to the consensus estimate of $81.03 million, this meant a surprise of -12.48%. Looking back, Latin America contributed $72.56 million, or 3.5%, in the previous quarter, and $74.46 million, or 3.8%, in the same quarter of the previous year.

Other Foreign generated $30.01 million in revenues for the company in the last quarter, constituting 1.4% of the total. This represented a surprise of -1.03% compared to the $30.32 million projected by Wall Street analysts. Comparatively, in the previous quarter, Other Foreign accounted for $26.5 million (1.3%), and in the year-ago quarter, it contributed $27.49 million (1.4%) to the total revenue.

International Market Revenue Projections

It is projected by analysts on Wall Street that RPM International will post revenues of $1.91 billion for the ongoing fiscal quarter, an increase of 3.3% from the year-ago quarter. The expected contributions from Asia Pacific, Canada, Europe, Latin America and Other Foreign to this revenue are 2.2%, 6.8%, 14.6%, 4%, and 1.5%, translating into $42.45 million, $130.11 million, $277.6 million, $76.4 million, and $28.68 million, respectively.

For the entire year, the company's total revenue is forecasted to be $7.71 billion, which is an improvement of 4.6% from the previous year. The revenue contributions from different regions are expected as follows: Asia Pacific will contribute 2.2% ($166.56 million), Canada 6.8% ($526.36 million)Europe 14.4% ($1.11 billion)Latin America 3.9% ($302.71 million) and Other Foreign 1.5% ($112.92 million) to the total revenue.

The Bottom Line

RPM International's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.

With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.

At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.

With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.

RPM International, bearing a Zacks Rank #3 (Hold), is expected to mirror the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Reviewing RPM International's Recent Stock Price Trends

The stock has declined by 7.7% over the past month compared to the 4.3% increase of the Zacks S&P 500 composite. Meanwhile, the Zacks Basic Materials sector, which includes RPM International,has increased 5.7% during this time frame. Over the past three months, the company's shares have experienced a gain of 3.1% relative to the S&P 500's 7.4% increase. Throughout this period, the sector overall has witnessed a 10.4% increase.


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