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

Flexible Solutions International (NYSE:FSI) Inc. FSI 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.

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 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 (NYSE:NUE) NUE, Dow Inc. DOW and Impala Platinum (OTC:IMPUY) Holdings Limited IMPUY.

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).

Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is “Will you get into the right stocks early when their growth potential is greatest?”

Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

Download FREE: How to Profit from Trillions on Spending for Infrastructure >>