RPM International Inc's stock plummeted 5.74% in pre-market trading following the release of its fiscal second-quarter results, which fell short of analyst expectations.
The company reported adjusted earnings per share (EPS) of $1.20, missing the consensus estimate of $1.42 by 15.43%. Quarterly sales of $1.91 billion also lagged behind the expected $1.928 billion. RPM attributed the weaker performance to the prolonged government shutdown, which led to longer lead times on construction projects and dampened consumer sentiment.
In response to the challenging environment, RPM announced cost-saving initiatives aimed at generating approximately $100 million in annual savings. Despite the disappointing results, the company maintained its outlook for mid-single-digit sales growth in the upcoming quarters.
