RPM International to Report Q1 Earnings: Here's What You Must Know

RPM International Inc. RPM is slated to report its first-quarter fiscal 2026 results on Oct. 1, before the opening bell.In the last reported quarter, RPM’s adjusted earnings per share (EPS) and net sales topped the Zacks Consensus Estimate by 7.5% and 3.2%, respectively. Both metrics grew year over year by 10.3% and 3.7%, respectively.The company’s earnings topped analysts’ expectations in three of the trailing four quarters and missed on the remaining occasion, with the negative average surprise being 4.4%.How are Estimates Placed for RPM Stock?The Zacks Consensus Estimate for the fiscal first quarter’s adjusted EPS has declined in the past 30 days to $1.87 per share from $1.88. The revised estimated figure indicates 1.6% growth from the year-ago figure of $1.84 per share.RPM International Inc. Price and EPS Surprise RPM International Inc. price-eps-surprise | RPM International Inc. QuoteThe consensus mark for net sales is pegged at $2.04 billion, indicating 3.8% year-over-year growth.Factors to Shape RPM’s Q1 PerformanceNet SalesThe top line of RPM International is expected to have gained year over year on the back of increased contributions from all its reportable segments - Construction Products Group (CPG), Performance Coatings Group (PCG) and Consumer Group. The growth is expected to have been driven by increased sales of systems and turnkey solutions for high-performance buildings, alongside a boost in sales of products and services for maintenance and repair projects.Moreover, the acquisitions of The Pink Stuff and Ready Seal are expected to have added to the tailwinds during the quarter. Although reduced DIY sales and soft demand trends in the specialty OEM markets are likely to have been a setback during the to-be-reported quarter, the aforementioned tailwinds and in-house efforts are expected to have been more than beneficial for RPM. The company expects first-quarter fiscal 2025 net sales to be up between low-and mid-single-digit percentages compared with the prior-year quarter.Segment-wise, the CPG segment (which contributed 38.9% to the fourth-quarter fiscal 2025 net sales) is expected to see net sales growth in low-to-mid-single-digit percentages. Our model predicts CPG sales to grow 3.1% year over year to $818.8 million. Net sales in the Consumer Group (33.2%) and PCG (19.2%) segments are also expected to grow in low-to-mid-single-digit percentages year over year. We expect net sales in the Consumer Group and PCG segments to increase year over year by 5.2% and 2.5%, respectively.As part of the restructuring actions and its MAP 2025 initiative, the company has segregated the Specialty Products Group business among its other three reportable segments. RPM expects that this strategic move will enable it to collaborate more closely to fuel revenue growth and profitability.Margins & EarningsIn the fiscal first quarter, RPM’s bottom line is expected to have gained on the back of its MAP 2025 initiatives, resulting in incremental savings in procurement, manufacturing and commercial excellence. Moreover, reduced advertising costs, insurance costs and decreased bonus expenses are expected to have aided the bottom line.The company expects adjusted EBIT to be up year over year in the low- to mid-single-digit percentage range. Our model predicts the metric to be up 4.5% year over year to $343 million.We expect selling, general and administrative expenses, as a percentage of net sales, to decline 10 basis points year over year to 26.6%.What Our Model Indicates for RPMOur proven model does not conclusively predict an earnings beat for RPM International this time around. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as you will see below.Earnings ESP: The company’s earnings ESP is -0.76%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.Zacks Rank: RPM stock currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.Stocks With the Favorable CombinationsAccording to our model, the following companies in the broader Basic Materials sector possess the right combination of elements to post an earnings beat in the upcoming quarter.Albemarle Corporation ALB currently has an Earnings ESP of +38.34% and a Zacks Rank of 3.Albemarle reported better-than-expected earnings in two of the trailing four quarters and missed on the remaining two occasions, the negative average surprise being 84.6%. The company’s earnings for the third quarter of 2025 are expected to increase year over year by 37.4%.Hudbay Minerals Inc. HBM currently has an Earnings ESP of +30.66% and a Zacks Rank of 3.Hudbay Minerals’ earnings for the third quarter of 2025 are expected to increase 46.2% year over year. The company reported better-than-expected earnings in three of the last four quarters and met on the remaining one occasion, the average surprise being 93.2%.Nexa Resources S.A. NEXA has an Earnings ESP of +20.00% and a Zacks Rank of 3 at present.Flexible Solutions reported better-than-expected earnings in two of the trailing four quarters and missed on the remaining two occasions, the negative average surprise being 15.7%. The company’s earnings for the third quarter of 2025 are expected to be up year over year by 400%.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Albemarle Corporation (ALB): Free Stock Analysis Report HudBay Minerals Inc (HBM): Free Stock Analysis Report RPM International Inc. (RPM): Free Stock Analysis Report Nexa Resources S.A. (NEXA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks