RPM International ( NYSE: RPM ) +3.4% in Wednesday's trading after comfortably beating FQ1 adjusted earnings estimates , as adjusted EBIT jumped by a third to a record $275M and revenues rose 17% Y/Y to a record $1.93B.
The company's Q2 outlook calls for sales growth of 9%-12% and adjusted EBIT growth of 30%-40%.
Record adjusted EBIT was driven by improved sales and pricing management, as well as increased fixed cost leverage from higher production volume at RPM's ( RPM ) disaster restoration business.
According to Bloomberg, Wells Fargo's Michael Sison said while some of RPM's ( RPM ) improvement was a rebound off a very low base, the company was able to raise prices to offset the impact of inflation and find new suppliers to help with sourcing materials.
RPM International's ( RPM ) "future is looking brighter, but there is some uncertainty about what the picture looks like beyond one quarter out," Daniel Jones writes in an analysis published on Seeking Alpha .
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RPM International on the rise after sold earnings beat