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Flexible Solutions (FSI) Q3 Earnings & Sales Lag Estimates

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Flexible Solutions International Inc. (FSI - Free Report) recorded earnings of 3 cents per share in third-quarter 2019, compared with a loss of a penny per share a year ago. The results in the reported quarter was boosted by strong growth in the top line. However, earnings missed the Zacks Consensus Estimate of 5 cents

The company reported revenues of around $7.4 million for the quarter, up roughly 94% year over year. It, however, trailed the Zacks Consensus Estimate of $8 million.

 

Segment Highlights

Sales from the company’s Energy and Water Conservation (EWCP) products for the quarter fell roughly 2% year over year to around $0.9 million.

Sales from the Biodegradable Polymers (BCPA products) surged around 96% over year to around $7.3 million in the quarter, driven by growth in most product lines and contributions of the ENP acquisition.

Financials

Flexible Solutions ended the quarter with cash and cash equivalents of roughly $6 million, down around 30% year over year. Long-term debt was $3.9 million at the end of the quarter.

Outlook

Moving ahead, Flexible Solutions expects strong revenue growth, as witnessed in the third quarter, to continue in the fourth quarter.

The company also sees significant increase in revenues for full-year 2019 on a year-over-year basis on the back of the ENP acquisition, historic operations and its investment in a Florida-based limited liability company (LLC). It also envisions profits and cash flows to rise considerably, driven by higher revenues.  

Price Performance

Shares of Flexible Solutions are up 82.2% year to date, outperforming the industry’s rise of 18.6%.  



 

 

Zacks Rank & Stocks to Consider

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

A few better-ranked stocks worth considering in the basic materials space include Agnico Eagle Mines Limited (AEM - Free Report) , Kirkland Lake Gold Ltd. and Franco-Nevada Corporation (FNV - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Agnico Eagle has a projected earnings growth rate of 168.6% for the current year. The company’s shares have rallied roughly 65% in a year’s time.

Kirkland Lake Gold has projected earnings growth rate of 96.3% for the current year. The company’s shares have surged around 154% in a year’s time.

Franco-Nevada has estimated earnings growth rate of 46.2% for the current year. The company’s shares have shot up roughly 45% in a year’s time.

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