RPM International Inc. (NYSE:RPM) shares are trading lower after the company reported third-quarter FY24 results.

Sales rose 0.4% Y/Y to $1.523 billion, slightly beating the consensus of $1.518 billion. Adjusted EPS of $0.52 exceeded the consensus of $0.46.

The company witnessed positive pricing in all segments, with volume growth being strongest in businesses serving infrastructure, reshoring, and high-performance building projects.

However, the revenue growth was offset by lower DIY consumer takeaway at retail stores and tough comparables in the disaster restoration business.

Geographically, sales growth was strongest in emerging markets, with Africa/Middle East rising 22.9% and Latin America increasing 13.5% Y/Y.

Adjusted EBIT rose 31.3% Y/Y to $110.1 million, with margins expanded 170 basis points in the quarter led by MAP 2025 initiatives, a positive mix from shifting toward higher margin products and services, and improved fixed-cost leverage at businesses with volume growth.

In nine months of FY24, operating cash flow stood at $941.1 million. The company returned $210.1 million to stockholders through cash dividends and share repurchases.

As of February 29, 2024, total liquidity, including cash and committed revolving credit facilities, stood at $1.29 billion and total debt of $2.19 billion.

RPM's regular quarterly cash dividend of $0.46 per share, is payable on April 30, 2024, to stockholders of record as of April 19, 2024.

Outlook: For the fourth quarter of FY24, the company expects sales to be flat Y/Y and adjusted EBIT to increase in the high single digits Y/Y.

For FY24, the company expects revenue growth near the midpoint of the previous outlook of an increase in the low-single-digits and adjusted EBIT growth near the midpoint of the prior outlook of up low-double digits to mid-teens.

Frank C. Sullivan, RPM chairman and CEO, said, "By segment, the secular tailwinds of infrastructure and reshoring spending benefitting CPG and PCG are expected to continue, although PCG will face some temporary headwinds in the fourth quarter from the timing of project completions, included those that were pulled forward into the third quarter. SPG business conditions have shown early signs of stabilization, however some end markets remain soft, and the Consumer Group continues to face DIY pressures."

Also Read: RPM International Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call

Investors can gain exposure to the stock via Invesco Dorsey Wright Basic Materials Momentum ETF (NASDAQ:PYZ) and ProShares S&P MidCap 400 Dividend Aristocrats ETF (BATS:REGL).

Price Action: RPM shares are down 3.42% at $114.61 on the last check Thursday.