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

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Flexible Solutions International Inc. (FSI - Free Report) recorded earnings of 10 cents per share for first-quarter 2020 compared with 9 cents it earned a year ago. Earnings topped the Zacks Consensus Estimate of 6 cents.

The company logged revenues of around $8.4 million for the quarter, down 0.5% year over year.

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 (“EWCP”) products for the quarter fell roughly 27% year over year to around $0.9 million, hurt by lower customer orders.

Sales of Biodegradable Polymers and Chemical Additives (TPAs) were essentially flat year over year at around $8.3 million in the quarter.

Financials

Flexible Solutions ended the quarter with cash and cash equivalents of roughly $3.4 million, down around 8% year over year. Long-term debt was roughly $3 million at the end of the quarter, down around 13% year over year.

Outlook

Flexible Solutions said that its agriculture and cleaning product ingredients are helping in the fight against the coronavirus pandemic. The company, however, expects oil, gas and industrial sales for TPA to be flat or slightly down in the second quarter, on a year-over-year basis. The company has adequate working capital and expects it to increase during 2020.

Price Performance

Shares of Flexible Solutions are down 49.8% over a year compared with the industry’s rise of 27.7%.  



 

 

Zacks Rank & Key Picks

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

Better-ranked stocks worth considering in the basic materials space are Barrick Gold Corporation (GOLD - Free Report) , The Scotts Miracle-Gro Company (SMG - Free Report) and Newmont Corporation (NEM - Free Report) .

Barrick Gold has a projected earnings growth rate of 64.7% for the current year. The company’s shares have rallied roughly 123% in a year. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Scotts Miracle-Gro has an expected earnings growth rate of 17.7% for the current fiscal year. The company’s shares have gained roughly 65% in the past year. It currently carries a Zacks Rank #2.

Newmont has a projected earnings growth rate of 85.6% for the current year. The company’s shares have surged around 113% in a year. It currently has a Zacks Rank #2.

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