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Flexible Solutions (FSI) Q2 Earnings Beat Estimates, Revenues Lag

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·3 min read
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  • FSI
  • NUE
  • MT
  • ASIX

Flexible Solutions International Inc. FSI logged profits of $1.18 million or 9 cents per share for second-quarter 2021 compared with a profit of $1.13 million or 9 cents in the year-ago quarter. Earnings surpassed the Zacks Consensus Estimate of 7 cents.

The company registered revenues of around $8.5 million for the quarter, up roughly 11% year over year. The top line missed the Zacks Consensus Estimate of $8.6 million. The higher sales are attributable to shipping of orders that missed the cut-off for first-quarter 2021, and also sales that could not be shipped in the first quarter due to the lack of raw materials resulting from shipping delays.

Flexible Solutions International Inc. Price, Consensus and EPS Surprise

Flexible Solutions International Inc. Price, Consensus and EPS Surprise
Flexible Solutions International Inc. Price, Consensus and EPS Surprise

Flexible Solutions International Inc. price-consensus-eps-surprise-chart | Flexible Solutions International Inc. Quote

Segment Highlights

Sales from the company’s Energy and Water Conservation products for the reported quarter rose roughly 12% year over year to around $0.1 million, supported by higher customer orders.

Sales of Biodegradable Polymers and Chemical Additives increased roughly 11% year over year to around $8.4 million in the quarter, aided by higher customer orders.

Financials

Flexible Solutions ended the quarter with cash and cash equivalents of roughly $5.3 million, up around 10% year over year. Long-term debt was roughly $2 million at the end of the quarter, down around 38% year over year.

Outlook

Flexible Solutions said that it expects raw material and shipping costs to constrain its margins in the second half of 2021. However, it remains confident of maintaining its recent growth in the second half of this year and through 2022.

The company also noted that new opportunities continue to unfold in applications such as detergent, water treatment, oil field extraction and agriculture to further grow sales in NanoChem. Flexible Solutions also expects its cash resources to be adequate to meet its cash flow requirements and future commitments.

Price Performance

Shares of Flexible Solutions are up 29.4% over a year compared with the industry’s rise of 22.8%.

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Zacks Investment Research


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Zacks Rank & Key Picks

Flexible Solutions currently carries a Zacks Rank #3 (Hold)

Better-ranked stocks worth considering in the basic materials space include Nucor Corporation NUE, ArcelorMittal MT and AdvanSix Inc. ASIX, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Nucor has a projected earnings growth rate of 489.2% for the current year. The company’s shares have surged around 168% in a year.

ArcelorMittal has an expected earnings growth rate of 1,731.2% for the current year. The company’s shares have shot up around 199% in the past year.

AdvanSix has an expected earnings growth rate of around 160.4% for the current year. The company’s shares have gained roughly 160% in the past year.


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Nucor Corporation (NUE) : Free Stock Analysis Report

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