Perimeter Solutions (NYSE:PRM) Issues Quarterly Earnings Results

Perimeter Solutions (NYSE:PRM) released its earnings results on Thursday. The company reported $0.85 earnings per share for the quarter, missing analysts’ consensus estimates of $0.96 by ($0.11), FiscalAI reports. Perimeter Solutions had a negative net margin of 44.86% and a positive return on equity of 19.15%. The company had revenue of $389.87 million during the quarter, compared to analysts’ expectations of $381.45 million.

Here are the key takeaways from Perimeter Solutions’ conference call:

• Q3 adjusted EBITDA rose 20% to $223.5 million, while net sales declined 24% to $389.9 million. Adjusted EPS was $0.85, compared with $0.82 a year earlier.
• Fire Safety revenue and adjusted EBITDA each increased 14%, with strength across product lines and geographies. DLA foam deliveries resumed, and the segment reported a 64.5% adjusted EBITDA margin despite the federal contract’s first-year pricing step-down.
• Specialty Products revenue rose 84% and adjusted EBITDA more than doubled, with MMT and IMS contributing to the segment’s growth. Management said MMT’s installed-base aftermarket business and IMS’s replacement electronics fit its recurring-revenue strategy.
• PDI’s supply reliability remains below customer requirements, and the company is expanding production and bringing on alternate suppliers. Management expects elevated costs and suppressed PDI EBITDA during the transition, without specifying when results will normalize.
• Perimeter generated $150.4 million of Q3 free cash flow and ended the quarter at 2.7x net leverage, with about $316 million in total liquidity. The company said this leaves capacity for customer-focused investment and potential acquisitions.

Perimeter Solutions Stock Performance

NYSE:PRM traded up $0.26 on Thursday, reaching $28.36. 2,850,004 shares of the company’s stock were exchanged, compared to its average volume of 1,301,838. The firm has a market cap of $4.64 billion, a price-to-earnings ratio of -12.72 and a beta of 1.91. The company has a debt-to-equity ratio of 1.19, a current ratio of 1.57 and a quick ratio of 0.93. The stock has a fifty day simple moving average of $29.12 and a 200-day simple moving average of $29.59. Perimeter Solutions has a 52 week low of $20.38 and a 52 week high of $38.17.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on PRM. Wall Street Zen lowered shares of Perimeter Solutions from a “buy” rating to a “hold” rating in a research note on Sunday, July 12th. JPMorgan Chase & Co. dropped their price objective on Perimeter Solutions from $45.00 to $40.00 and set an “overweight” rating on the stock in a research note on Tuesday, October 13th. Weiss Ratings raised Perimeter Solutions from a “sell (d)” rating to a “sell (d+)” rating in a report on Monday, October 19th. UBS Group decreased their target price on Perimeter Solutions from $42.00 to $38.00 and set a “buy” rating for the company in a research report on Tuesday, September 29th. Finally, Zacks Research upgraded Perimeter Solutions from a “strong sell” rating to a “hold” rating in a research note on Thursday, October 15th. Four investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Perimeter Solutions has a consensus rating of “Moderate Buy” and an average price target of $41.50.

Perimeter Solutions Company Profile

Perimeter Solutions, Inc (NYSE:PRM) is a specialty chemicals and fire-safety company that develops and supplies products used to prevent, control and suppress fires, as well as chemicals used in industrial applications. Its operations are organized primarily around fire-safety products and performance chemicals.

The company’s fire-safety portfolio includes PHOS-CHEK-branded wildfire retardants, firefighting foams, gels and other suppression products. These solutions are used by government agencies, fire departments, aviation and industrial customers, and other organizations involved in wildfire response, emergency preparedness and fire protection.

Perimeter Solutions also produces phosphorus-based specialty chemicals, including phosphorus pentasulfide, which is used in applications such as lubricant additives and other industrial processes.