Shares of RPM International Inc. (RPM) tumbled 5.15% in pre-market trading on Tuesday following the release of its fiscal 2025 third-quarter results, which fell short of analysts' expectations. The specialty chemicals company reported adjusted earnings per share of $0.35, significantly below the $0.49 estimated by analysts, while sales came in at $1.48 billion, missing the forecasted $1.51 billion.
The company's financial performance showed weakness across multiple metrics. RPM's Q3 adjusted EBIT was $78.24 million, considerably lower than the estimated $105.7 million. Additionally, the pretax profit of $40.95 million was less than half of the $83.1 million analysts had anticipated. These disappointing figures likely contributed to investor concerns, leading to the sharp pre-market decline.
Looking ahead, RPM provided a cautious outlook for its fiscal 2025 fourth quarter, projecting flat sales and adjusted EBIT growth in the low-single-digit percentage range. The company also warned about the impact of tariffs, stating, "We are not immune," and expecting raw material inflation to increase from low-single-digits to mid-single digits as a result of currently known tariffs. This outlook, combined with the broader market concerns over potential trade tensions between the U.S. and China, may be amplifying the negative sentiment surrounding RPM's stock.
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