Yahoo Finance RPM International Inc. (NYSE:RPM) Third-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For Next Year
Shareholders might have noticed that RPM International Inc. (NYSE:RPM) filed its third-quarter result this time last week. The early response was not positive, with shares down 5.1% to US$113 in the past week. It was a credible result overall, with revenues of US$1.5b and statutory earnings per share of US$0.47 both in line with analyst estimates, showing that RPM International is executing in line with expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for RPM International
Taking into account the latest results, the most recent consensus for RPM International from 15 analysts is for revenues of US$7.63b in 2025. If met, it would imply a credible 3.9% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 26% to US$5.46. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$7.69b and earnings per share (EPS) of US$5.44 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The analysts reconfirmed their price target of US$118, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values RPM International at US$136 per share, while the most bearish prices it at US$99.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that RPM International's revenue growth is expected to slow, with the forecast 3.1% annualised growth rate until the end of 2025 being well below the historical 7.2% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.4% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than RPM International.
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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will 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.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple RPM International analysts - going out to 2026, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with RPM International , and understanding them should be part of your investment process.
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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.
