RPM International Inc. (NYSE:RPM) reported third-quarter fiscal results that significantly exceeded expectations, sending shares up more than 12% intraday Wednesday.
The company posted adjusted earnings per share of $0.57, surpassing the analyst consensus of $0.35 by $0.22, or 62.9%. Revenue reached a record $1.61 billion, exceeding estimates of $1.55 billion and rising 8.9% from $1.48 billion in the prior-year period.
The company attributed its performance to volume growth in high-performance building solutions, contributions from acquisitions, and operational improvements driven by its MAP initiatives.
Sales growth consisted of 3.0% organic growth, 3.5% from acquisitions, and a 2.4% tailwind from foreign currency translation.
Adjusted EBIT rose to a record $116.4 million, up 48.8% from $78.2 million a year earlier, supported by higher sales and improved fixed-cost leverage.
The company excluded $22.1 million in pre-tax charges related to SG&A optimization efforts from adjusted results.
For the fourth quarter, RPM reaffirmed its outlook for mid-single-digit sales growth and low- to high-single-digit adjusted EBIT growth compared to the prior year's record performance. Management expressed confidence in achieving record fourth-quarter results despite more difficult comparisons and ongoing geopolitical uncertainty in the Middle East.
