RPM International Inc. (NYSE:RPM) reported third-quarter adjusted earnings of $0.57 per share on Wednesday, significantly surpassing the analyst consensus forecast of $0.35 by $0.22, or about 62.9%. Revenue reached a record $1.61 billion, exceeding expectations of $1.55 billion and rising 8.9% from $1.48 billion in the same period a year earlier.
Following the announcement, the company’s shares climbed about 9.61% in pre-market trading.
The specialty coatings and building materials manufacturer attributed the strong results to higher volumes in its high-performance building solutions segment, contributions from recent acquisitions, and operational efficiencies generated through its MAP initiatives.
Total sales growth was supported by 3.0% organic expansion, 3.5% growth from acquisitions, and a 2.4% positive impact from foreign currency translation.
“I am proud of our record third-quarter results. In a period of volatile market conditions, we generated volume growth and record sales by utilizing our competitive strengths and nimbly focusing on growing end markets,” said Frank C. Sullivan, chairman and chief executive officer of RPM.
Adjusted EBIT reached a record $116.4 million, up 48.8% from $78.2 million in the prior-year quarter, reflecting stronger sales and improved fixed-cost leverage.
The company excluded $22.1 million in pre-tax charges tied to SG&A optimization initiatives when calculating adjusted results.
Looking ahead, RPM reaffirmed its fourth-quarter outlook, projecting mid-single-digit sales growth and adjusted EBIT growth ranging from the low to high single digits compared with last year’s record performance.
Management said it remains confident about delivering record results in the fourth quarter despite tougher year-over-year comparisons and geopolitical uncertainty in the Middle East.
All three of the company’s business segments reported record sales and improved profitability during the quarter.