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In the last reported quarter, RPM’s adjusted earnings per share (EPS) topped the Zacks Consensus Estimate by 2.7% and increased 9.9% year over year. Meanwhile, net sales beat the consensus estimate by 2.1% and increased 7.2% year over year.
The company’s earnings topped analysts’ expectations in three of the trailing four quarters and missed on the remaining one occasion, with the average surprise being 10.6%.
How Are Estimates Placed for RPM Stock?
The Zacks Consensus Estimate for the fiscal first quarter’s adjusted EPS has declined slightly in the past 30 days to $1.95 per share from $1.96. The revised estimated figure indicates 3.7% growth from the year-ago reported figure of $1.88.
The consensus mark for net sales is pegged at $2.22 billion, indicating 4.9% year-over-year growth.
Factors Likely to Shape RPM’s Q1 Results
Net Sales
RPM International’s fiscal first-quarter net sales are likely to have increased year over year, supported by demand from high-performance buildings, infrastructure projects, maintenance and restoration. The Consumer segment is also likely to have benefited from easier comparisons and signs of stabilization in DIY markets. The company’s system-selling approach and solid pipeline of construction projects are additional factors supporting sales activity.
The company expects consolidated sales to increase in the mid-single-digit range in the fiscal first quarter from the prior-year record results. By segment, Construction Products Group (“CPG”), Performance Coatings Group (“PCG”) and Consumer Group sales are each expected to increase in the mid-single-digit range.
Our model predicts fiscal first-quarter CPG sales (which contributed 40.5% to fourth-quarter fiscal 2026 net sales) to grow 6.5% year over year to $938.7 million. We expect net sales in the Consumer Group (34.3%) and PCG (25.2%) segments to increase 3.7% and 3.8% year over year, respectively.
RPM’s focus on high-performance buildings and infrastructure is likely to support demand, while resilient repair and maintenance activity should provide additional support. The company’s engineered system offerings also help it capture a larger share of project spending.
However, economic uncertainty is likely to limit demand visibility. DIY markets remain a challenge, particularly for Consumer. A temporary supplier issue affecting propylene oxide-derived raw materials is also expected to have some negative impact on fiscal first-quarter sales growth, although the company expects the situation to improve toward the end of the summer.
Margins & Earnings
RPM’s fiscal first-quarter earnings are likely to benefit from SG&A-focused optimization actions and pricing implemented to offset higher raw material costs. The company expects its previously announced SG&A reductions to generate $25 million in benefits in the fiscal first quarter, partly offset by higher health care and benefit expenses.
At the same time, inflation is expected to pressure the gross margin. The company expects 5-6% in fiscal first-quarter raw material inflation, with pricing increases already implemented to offset the inflation on a dollar basis. Additional pricing is expected to help recover the gross margin percentage lost in the fiscal first quarter.
The company expects consolidated adjusted EBITDA to increase year over year in the mid-single-digit range. Our model predicts the metric to rise 5.3% to $410 million.
What Our Model Indicates for RPM
Our proven model does not conclusively predict an earnings beat for RPM International this time around. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as you will see below.
Earnings ESP: The company’s earnings ESP is -1.64%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Zacks Rank: RPM currently carries a Zacks Rank of 4 (Sell).
Stocks With the Favorable Combinations
According to our model, the following companies in the broader Basic Materials sector possess the right combination of elements to post an earnings beat in the upcoming quarter.
Reliance reported better-than-expected earnings in two of the trailing four quarters and missed on the remaining two occasions, the average surprise being 3.2%. Earnings for Reliance’s to-be-reported quarter are expected to grow 85.4% year over year.
Air Products and Chemicals (APD - Free Report) currently has an Earnings ESP of +0.79% and a Zacks Rank of 2.
APD reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining occasion, the average surprise being 2.9%. Earnings for APD’s to-be-reported quarter are expected to soar 6.2% year over year.
Agnico Eagle Mines (AEM - Free Report) has an Earnings ESP of +6.05% and it sports a Zacks Rank of 3 at present.
Agnico Eagle reported better-than-expected earnings in the trailing four quarters, the average surprise being 9.8%. Earnings for Agnico Eagle’s to-be-reported quarter are expected to surge 13.4% year over year.
View the Zacks #1 Rank List
Image: Zacks
RPM International to Report Q1 Earnings: Here's What You Must Know
Key Takeaways
RPM International Inc. (RPM - Free Report) is slated to report first-quarter fiscal 2027 results on Oct. 6, before the opening bell.
In the last reported quarter, RPM’s adjusted earnings per share (EPS) topped the Zacks Consensus Estimate by 2.7% and increased 9.9% year over year. Meanwhile, net sales beat the consensus estimate by 2.1% and increased 7.2% year over year.
The company’s earnings topped analysts’ expectations in three of the trailing four quarters and missed on the remaining one occasion, with the average surprise being 10.6%.
How Are Estimates Placed for RPM Stock?
The Zacks Consensus Estimate for the fiscal first quarter’s adjusted EPS has declined slightly in the past 30 days to $1.95 per share from $1.96. The revised estimated figure indicates 3.7% growth from the year-ago reported figure of $1.88.
RPM International Inc. Price and EPS Surprise
RPM International Inc. price-eps-surprise | RPM International Inc. Quote
The consensus mark for net sales is pegged at $2.22 billion, indicating 4.9% year-over-year growth.
Factors Likely to Shape RPM’s Q1 Results
Net Sales
RPM International’s fiscal first-quarter net sales are likely to have increased year over year, supported by demand from high-performance buildings, infrastructure projects, maintenance and restoration. The Consumer segment is also likely to have benefited from easier comparisons and signs of stabilization in DIY markets. The company’s system-selling approach and solid pipeline of construction projects are additional factors supporting sales activity.
The company expects consolidated sales to increase in the mid-single-digit range in the fiscal first quarter from the prior-year record results. By segment, Construction Products Group (“CPG”), Performance Coatings Group (“PCG”) and Consumer Group sales are each expected to increase in the mid-single-digit range.
Our model predicts fiscal first-quarter CPG sales (which contributed 40.5% to fourth-quarter fiscal 2026 net sales) to grow 6.5% year over year to $938.7 million. We expect net sales in the Consumer Group (34.3%) and PCG (25.2%) segments to increase 3.7% and 3.8% year over year, respectively.
RPM’s focus on high-performance buildings and infrastructure is likely to support demand, while resilient repair and maintenance activity should provide additional support. The company’s engineered system offerings also help it capture a larger share of project spending.
However, economic uncertainty is likely to limit demand visibility. DIY markets remain a challenge, particularly for Consumer. A temporary supplier issue affecting propylene oxide-derived raw materials is also expected to have some negative impact on fiscal first-quarter sales growth, although the company expects the situation to improve toward the end of the summer.
Margins & Earnings
RPM’s fiscal first-quarter earnings are likely to benefit from SG&A-focused optimization actions and pricing implemented to offset higher raw material costs. The company expects its previously announced SG&A reductions to generate $25 million in benefits in the fiscal first quarter, partly offset by higher health care and benefit expenses.
At the same time, inflation is expected to pressure the gross margin. The company expects 5-6% in fiscal first-quarter raw material inflation, with pricing increases already implemented to offset the inflation on a dollar basis. Additional pricing is expected to help recover the gross margin percentage lost in the fiscal first quarter.
The company expects consolidated adjusted EBITDA to increase year over year in the mid-single-digit range. Our model predicts the metric to rise 5.3% to $410 million.
What Our Model Indicates for RPM
Our proven model does not conclusively predict an earnings beat for RPM International this time around. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as you will see below.
Earnings ESP: The company’s earnings ESP is -1.64%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Zacks Rank: RPM currently carries a Zacks Rank of 4 (Sell).
Stocks With the Favorable Combinations
According to our model, the following companies in the broader Basic Materials sector possess the right combination of elements to post an earnings beat in the upcoming quarter.
Reliance, Inc. (RS - Free Report) currently has an Earnings ESP of +3.26% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Reliance reported better-than-expected earnings in two of the trailing four quarters and missed on the remaining two occasions, the average surprise being 3.2%. Earnings for Reliance’s to-be-reported quarter are expected to grow 85.4% year over year.
Air Products and Chemicals (APD - Free Report) currently has an Earnings ESP of +0.79% and a Zacks Rank of 2.
APD reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining occasion, the average surprise being 2.9%. Earnings for APD’s to-be-reported quarter are expected to soar 6.2% year over year.
Agnico Eagle Mines (AEM - Free Report) has an Earnings ESP of +6.05% and it sports a Zacks Rank of 3 at present.
Agnico Eagle reported better-than-expected earnings in the trailing four quarters, the average surprise being 9.8%. Earnings for Agnico Eagle’s to-be-reported quarter are expected to surge 13.4% year over year.