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RPM International Shares Decline After Underwhelming Q3 Results

RPM International Inc. experienced a notable drop in its stock value on Tuesday following the announcement of its fiscal third-quarter earnings, which did not meet market expectations.

The company, known for its popular brands such as DayGlo and Rust-Oleum, reported adjusted earnings per share (EPS) of $0.35. This figure was contrasted by revenue that decreased by 3% year-over-year, totaling $1.48 billion. Analysts surveyed by Visible Alpha had forecasted earnings of $0.48 per share alongside revenues of $1.5 billion.

CEO Frank Sullivan attributed the disappointing results to adverse weather conditions, stating, “The unfavorable weather conditions we discussed in early January continued and became more widespread as the third quarter progressed.” He elaborated that “unseasonably cold weather in the southern U.S. and wildfires in the west reduced demand in geographies that typically experience more construction and outdoor project activity during winter months.”

Looking ahead to the fourth quarter, RPM projects stagnant sales alongside adjusted EBIT growth within a low-single-digit percentage range, both of which fall short of investor expectations.

In response to these developments, shares of RPM fell by over 4% in recent trading, contributing to a downward trend that has seen the company lose nearly 20% of its value since the beginning of the year.

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