Flexible Solutions International Inc. FSI logged earnings of 9 cents per share for second-quarter 2020 compared with break-even results in the year-ago quarter. Earnings topped the Zacks Consensus Estimate of 5 cents.
The company registered revenues of around $7.7 million for the quarter, up roughly 14% year over year. It also surpassed the Zacks Consensus Estimate of $7.6 million. The company benefited from organic growth in the quarter.
Flexible Solutions noted that its subsidiary, NanoChem, remained the main source of revenues and cash flows.
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 fell roughly 25% year over year to around $0.1 million, hurt by lower customer orders.
Sales of Biodegradable Polymers and Chemical Additives rose roughly 15% year over year to around $7.6 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 $4.8 million, down around 11% year over year. Long-term debt was roughly $3.2 million at the end of the quarter, down around 14% year over year.
Outlook
Flexible Solutions said that it remains focused on making products used for essential services in agriculture and cleaning products amid the coronavirus pandemic. 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 down 3.4% over a year compared with the industry’s decline of 7.8%.
Zacks Rank & Key Picks
Flexible Solutions currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks worth considering in the basic materials space include Barrick Gold Corporation GOLD, Yamana Gold Inc. AUY and Eldorado Gold Corporation EGO.
Barrick Gold has a projected earnings growth rate of 80.4% for the current year. The company’s shares have gained around 49% in a year. It currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Yamana Gold has a projected earnings growth rate of 76.9% for the current year. The company’s shares have rallied roughly 78% in a year. It currently carries a Zacks Rank #2.
Eldorado Gold has an expected earnings growth rate of 2,215% for the current year. The company’s shares have gained around 29% in the past year. It presently carries a Zacks Rank #2.
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