RPM International Inc. (NYSE: RPM) is benefiting from the efficient execution of its MAP 2025 initiatives, increased infrastructure demand, especially in international markets, and its focus on the repair and maintenance business.
The estimate for the Zacks Rank #3 (Hold) company's earnings for fiscal 2025 has trended upward in the past 30 days to $5.51 per share from $5.46. The estimate figure indicates growth rate of 11.5% from the figure reported a year ago. Although the estimate for first-quarter fiscal 2025 earnings has declined to $1.76 per share from $1.77 during the same time frame, the figure indicates 7.3% year-over-year growth.
The growth prospect is solidified with a VGM Score of A, backed by a Growth Score of A and a Value Score of B. The positive trend signifies bullish analyst sentiments, robust fundamentals and prospects of an outperformance in the near term.
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However, the company is facing headwinds in the form of increased costs and expenses and soft demand trends across two of four of its reportable segments. Shares of this manufacturer and marketer of specialty coatings, sealants and building materials have gained 16.7% in the past year compared with the Zacks Paints and Related Products industry's 31.4% growth.
Factors Supporting the Uptrend of RPM
MAP 2025 Plan: This operational improvement initiative was unveiled by RPM in August 2022 to maximize operational efficiencies and generate superior value for its customers, associates and shareholders through 2025. Despite the ongoing market uncertainties and challenging end-market scenario, RPM International realized notable benefits from the MAP 2025 initiatives.
During fiscal 2024, the company achieved 11.9% year-over-year growth in its adjusted EBIT of $941.6 million, with ...
