RPM - RPM falls to 7-month low on cautious sales outlook

2023-04-06 13:04:56 ET

RPM International ( NYSE: RPM ) on Thursday fell as much as 5.8% to a seven-month low after the maker of paint brands such as Rust-Oleum and Zinsser provided a lackluster sales forecast.

The company said sales during the current quarter are likely to be flat with those of the prior year, helped by growth for its consumer products and performance coatings. It estimated sales for its building supplies business will fall by a low- to mid-single-digit percentage, while its specialty-products group will see a low-double-digit percentage decline.

"Given the increasingly cautious economic outlook, we are focused on executing initiatives within our control," Frank Sullivan, chairman and CEO of RPM, said in a statement . “We are aligning resources with demand levels, launching new products over the next several quarters, and leveraging our strong positions in expanding end markets that serve infrastructure and reshoring projects.”

RPM ( RPM ) forecast that EBIT will decline by a high-single-digit percentage from a year earlier in its fiscal Q4.

The company’s adjusted EPS of $0.37 beat the consensus estimate of $0.31 for its fiscal Q3. Revenue grew 6.3% from a year earlier to $1.52 billion, beating Wall Street’s average estimate by $50 million.

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