Is RPM International (RPM) a 'Buy' Heading into Q3 Earnings Announcement?

Zacks
03 Apr

Coating and sealant manufacturer RPM International RPM is set to report fiscal third-quarter results on Tuesday before the opening bell. RPM International, a Zacks Rank #4 (Sell), has exceeded the earnings mark in each of the past four quarters. With the stock pulling back from its November highs, is RPM International a buy prior to the release?

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Analysts are expecting the company to post quarterly earnings of 52 cents per share, reflecting a breakeven performance relative to the same quarter last year. Sales are projected to have slightly decreased year-over-year to $1.51 billion.

RPM’s business has been witnessing higher costs and expenses related to restructuring, divestitures, and labor inflation. Tepid sales projections and a high level of customer concentration are also major concerns.

The company has delivered a trailing four-quarter average earnings surprise of 3.96%. Our proprietary Zacks Earnings ESP (Expected Surprise Prediction) indicator doesn’t conclusively predict another beat for the upcoming announcement.

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This article originally published on Zacks Investment Research (zacks.com).

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