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Flexible Solutions (FSI) Q3 Earnings Miss, Revenues In Line

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Flexible Solutions International Inc. (FSI - Free Report) logged earnings of 5 cents per share for third-quarter 2020, up from 3 cents in the year-ago quarter. Earnings lagged the Zacks Consensus Estimate of 8 cents.

The company registered revenues of around $8.1 million for the quarter, up roughly 10% year over year. It was in line with the Zacks Consensus Estimate.

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 rose roughly 10% year over year to around $0.1 million.

Sales of Biodegradable Polymers and Chemical Additives increased roughly 10% year over year to around $8 million in the quarter. The company saw growth across most product lines in the quarter.

Financials

Flexible Solutions ended the quarter with cash and cash equivalents of roughly $6.2 million, up around 3% year over year. Long-term debt was roughly $2.6 million at the end of the quarter, down around 33% year over year.

Outlook

Flexible Solutions said that it continues to generate profit amid an uncertain environment. 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 for the coming year.

Price Performance

Shares of Flexible Solutions are up 9.4% over a year compared with the industry’s rise of 2.9%.

 

 

 

Zacks Rank & Key Picks

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

Better-ranked stocks worth considering in the basic materials space include Agnico Eagle Mines Limited (AEM - Free Report) , Barrick Gold Corporation (GOLD - Free Report) and Pretium Resources Inc. .

Agnico Eagle has a projected earnings growth rate of 103.1% for the current year. The company’s shares have gained around 25% 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.

Barrick Gold has an expected earnings growth rate of 115.7% for the current year. The company’s shares have surged around 53% in the past year. It currently carries a Zacks Rank #2 (Buy).

Pretium Resources has an expected earnings growth rate of 25.5% for the current year. The company’s shares have gained around 29% in the past year. It currently carries a Zacks Rank #2.

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