RPM International (RPM) Earnings Expected to Grow: What to Know Ahead of Next Week's Release

RPM International (RPM) is anticipated to report Q1 FY25 earnings of $1.87 per share (+1.6% YoY) and revenue of $2.04 billion (+3.8% YoY) on October 1. While the specialty chemicals company has beaten EPS estimates in three of the last four quarters, its current Zacks Rank #3 combined with a negative Earnings ESP of -0.76% suggests recent analyst bearishness, making a definitive earnings beat difficult to predict for the upcoming release.

Analysis

RPM International is projected to report modest year-over-year growth for its quarter ending August 2025, with consensus estimates pointing to a 1.6% increase in EPS to $1.87 and a 3.8% rise in revenue to $2.04 billion. Despite this positive top-line and bottom-line forecast, recent analyst activity introduces a significant layer of caution. The consensus EPS estimate has remained flat over the past 30 days, but more recent revisions, captured by the 'Most Accurate Estimate', are lower than the consensus. This divergence has resulted in a negative Zacks Earnings ESP of -0.76%, signaling a recent bearish turn in analyst sentiment regarding the company's near-term earnings power. While RPM has a strong history of outperformance, having beaten consensus EPS estimates in three of the last four quarters, the current combination of a Zacks Rank #3 (Hold) and a negative ESP makes it statistically difficult to predict another earnings beat. Therefore, the outlook is mixed, balancing a track record of positive surprises against deteriorating near-term expectations from analysts.

Key Decisions for Investors

• Given the negative Earnings ESP of -0.76%, which indicates recent analyst pessimism, investors should be cautious heading into the earnings release as the probability of a positive surprise is diminished.
• Investors should prioritize management's forward-looking guidance and commentary on business conditions during the earnings call, as this will likely be more influential on the stock's medium-term trajectory than the headline EPS number itself.
• Considering RPM's strong history of beating estimates against the current weak predictive signals, a neutral stance may be prudent; existing holders might consider holding their positions while new investors may prefer to wait for post-release clarity.