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Flexible Solutions (FSI) Q1 Earnings Beat, Revenues Down Y/Y

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Flexible Solutions International Inc. (FSI - Free Report) logged earnings of 12 cents per share for first-quarter 2021, up from 10 cents in the year-ago quarter. Earnings surpassed the Zacks Consensus Estimate of 7 cents.

The company registered revenues of around $7.6 million for the quarter, down roughly 10% year over year. It faced challenges from shipping difficulties in the quarter. The lower sales are also attributable to late orders from certain customers.

Flexible Solutions noted that its subsidiary, NanoChem, remained the main source of revenues and cash flows.

 

 

Segment Highlights

Sales from the company’s Energy and Water Conservation products for the reported quarter fell roughly 21% year over year to around $0.07 million, impacted by lower customer orders.

Sales of Biodegradable Polymers and Chemical Additives decreased roughly 9% year over year to around $7.55 million in the quarter, hurt by reduced customer orders.

Financials

Flexible Solutions ended the quarter with cash and cash equivalents of roughly $1.9 million, down around 44% year over year. Long-term debt was roughly $2.3 million at the end of the quarter, down around 23% year over year.

Outlook

Flexible Solutions said that its expectations for the full year remain positive. 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 98.8% over a year compared with the industry’s decline of 8.4%.

 

 

 

Zacks Rank & Key Picks

Flexible Solutions currently carries a Zacks Rank #5 (Strong Sell).

Better-ranked stocks worth considering in the basic materials space include Nucor Corporation (NUE - Free Report) , Dow Inc. (DOW - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .

Nucor has a projected earnings growth rate of 228.4% for the current year. The company’s shares have rallied around 160% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Dow has a projected earnings growth rate of 261.5% for the current year. The company’s shares have shot up around 93% in a year. It currently sports a Zacks Rank #1.

Impala Platinum has an expected earnings growth rate of 225.2% for the current fiscal. The company’s shares have surged around 184% in the past year. It currently carries a Zacks Rank #2 (Buy).

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