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Flexible Solutions (FSI) Q2 Earnings Top Estimates, Sales Up Y/Y

·3-min read

Flexible Solutions International Inc. FSI logged profits of $1.66 million or 13 cents per share for second-quarter 2022, compared with a profit of $1.18 million or 10 cents in the year-ago quarter. Earnings per share topped the Zacks Consensus Estimate of 7 cents.

The company registered revenues of around $11.2 million for the quarter, up roughly 31% year over year. It saw higher sales across its segments in the reported quarter. It faced headwinds from significant raw material cost inflation and some shipping disruptions in the quarter.

 

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 41% year over year to around $0.19 million, driven by higher customer orders.

Sales of Biodegradable Polymers increased roughly 31% year over year to around $10.98 million in the quarter, aided by higher customer orders.

Financials

Flexible Solutions ended the quarter with cash and cash equivalents of roughly $4.5 million, down around 15% year over year. Long-term debt was roughly $4.8 million at the end of the quarter, up around 140% year over year.

Outlook

Flexible Solutions said that it expects to continue the momentum in the next several quarters. 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 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 25.7% over a year compared with the industry’s decline of 12.7%.

 

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

 

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, Albemarle Corporation ALB and Daqo New Energy Corp. DQ.

Sociedad has a projected earnings growth rate of 513.7% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 32.6% upward in the past 60 days.

Sociedad’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, the average being 28.2%. SQM has rallied roughly 116% in a year. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Albemarle has a projected earnings growth rate of 405.2% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 61.3% upward in the past 60 days.

Albemarle’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 24.2%, on average. ALB has gained around 30% in a year and currently carries a Zacks Rank #1.

Daqo New Energy, currently carrying a Zacks Rank #1, has an expected earnings growth rate of 177.5% for the current year. The Zacks Consensus Estimate for DQ's earnings for the current fiscal has been revised 20.8% upward in the past 60 days.

Daqo New Energy’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 10.8%. DQ has gained around 40% over a year.


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