09:17 AM EDT, 10/02/2024 (MT Newswires) -- RPM International's ( RPM ) fiscal first-quarter earnings beat Wall Street expectations while revenue fell short of market estimates as the specialty chemicals manufacturer maintained its full-year sales growth outlook.

For the three months through August, RPM's adjusted earnings advanced to $1.84 a share from $1.64 the year before, topping the Street's view for $1.74. Sales declined 2.1% year over year to $1.97 billion, trailing analysts' $2.01 billion estimate.

The company anticipates sales in the ongoing quarter to be flat year over year. It logged revenue of $1.79 billion in the second quarter of fiscal 2024, while the current consensus on Capital IQ is for $1.82 billion.

"The economic outlook for the second quarter remains mixed with continued growth in high-performance building construction and renovation, and softness in residential end markets," Chief Executive Frank Sullivan said in a statement. "While we are optimistic that lower interest rates will eventually lead to a rebound in residential markets, it is too early to say precisely when growth will return."

Construction products revenue increased to nearly $794 million from $782.8 million in the prior-year quarter, while performance coatings revenue decreased 1.8% to about $371.8 million. Specialty products revenue fell 3.5% to $174.6 million, while the consumer segment saw sales drop 6.1% to $628.5 million.

Volume growth in the construction products and performance coatings segments and "slightly" positive overall pricing were more than offset by foreign-exchange headwinds and volume declines in the consumer and specialty products divisions, according to the company. Sales declined "modestly" in North America and were down in Europe due to the soft economic environment, foreign-currency translation and divestitures.

"Our construction products and performance coatings groups both generated organic growth, and our specialty products and consumer groups expanded adjusted (earnings before interest and taxes) margins despite continued weakness in end markets tied to housing," according to Sullivan.

For fiscal 2025, the maker of specialty coatings, sealants and building materials continues to project low-single-digit consolidated sales growth versus the previous year. The Street is looking for revenue of $7.47 billion for the fiscal year.