Flexible Solutions (FSI) Q3 Earnings Beat Estimates, Sales Up Y/Y
Flexible Solutions International Inc. FSI logged profits of roughly $1.11 million or 9 cents per share for third-quarter 2022 compared with a profit of roughly $1.16 million or 9 cents in the year-ago quarter. Earnings per share topped the Zacks Consensus Estimate of 6 cents.
The company registered revenues of around $11.7 million for the quarter, up roughly 27% year over year. It saw higher sales across its segments in the reported quarter. It faced headwinds from raw material cost inflation and higher shipping costs in the quarter.
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 84% year over year to around $0.18 million, driven by higher customer orders.
Sales of Biodegradable Polymers increased roughly 21% year over year to around $11.5 million in the quarter, aided by higher customer orders.
Financials
Flexible Solutions ended the quarter with cash and cash equivalents of roughly $4.3 million, down around 12% year over year. Long-term debt was roughly $4.6 million at the end of the quarter, up around 170% year over year.
Outlook
Flexible Solutions expects to finish 2022 strongly. It also said that new opportunities continue to unfold in applications such as detergent, water treatment, oil field extraction and agriculture to further boost sales in the NanoChem division. 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 down 22.8% over a year compared with the industry’s decline of 28.6%.
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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 Sociedad Quimica y Minera de Chile S.A. SQM, Commercial Metals Company CMC and Reliance Steel & Aluminum Co. RS.
Sociedad has a projected earnings growth rate of 538.1% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 1.2% upward in the past 60 days.
Sociedad has a trailing four-quarter earnings surprise of roughly 27.2%. SQM has rallied roughly 60% in a year. The company currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Commercial Metals currently carries a Zacks Rank #1. The Zacks Consensus Estimate for CMC's current-year earnings has been revised 3.8% upward in the past 60 days.
Commercial Metals’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 19.7%, on average. CMC has gained around 38% in a year.
Reliance Steel, currently carrying a Zacks Rank #2, has a projected earnings growth rate of 29.7% for the current year. The Zacks Consensus Estimate for RS's current-year earnings has been revised 0.1% upward in the past 60 days.
Reliance Steel’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 13.6%, on average. RS has gained around 28% in a year.
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