Earnings Miss: RPM International Inc. Missed EPS By 5.0% And Analysts Are Revising Their Forecasts

Investors in RPM International Inc. (NYSE:RPM) had a good week, as its shares rose 4.5% to close at US$118 following the release of its full-year results. Revenues of US$7.3b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$4.56, missing estimates by 5.0%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on RPM International after the latest results.

Check out our latest analysis for RPM International

Taking into account the latest results, the current consensus from RPM International's 13 analysts is for revenues of US$7.48b in 2025. This would reflect an okay 2.0% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to expand 20% to US$5.45. In the lead-up to this report, the analysts had been modelling revenues of US$7.55b and earnings per share (EPS) of US$5.43 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of US$125, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic RPM International analyst has a price target of US$140 per share, while the most pessimistic values it at US$107. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that RPM International's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.0% growth on an annualised basis. This is compared to a historical growth rate of 7.1% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.7% annually. Factoring in the forecast slowdown in growth, it seems obvious that RPM International is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that RPM International's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple RPM International analysts - going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for RPM International that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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