Perimeter Solutions (NYSE:PRM) Releases Quarterly Earnings Results, Misses Expectations By $0.11 EPS

Perimeter Solutions (NYSE:PRM) posted its quarterly earnings results on Thursday. The company reported $0.85 EPS for the quarter, missing the consensus estimate 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 business had revenue of $389.87 million during the quarter, compared to the consensus estimate 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 Trading Up 5.0%

Shares of Perimeter Solutions stock opened at $29.54 on Friday. Perimeter Solutions has a fifty-two week low of $20.38 and a fifty-two week high of $38.17. The business’s fifty day moving average is $29.02 and its two-hundred day moving average is $29.59. The company has a quick ratio of 0.93, a current ratio of 1.57 and a debt-to-equity ratio of 1.19. The firm has a market cap of $4.84 billion, a PE ratio of 227.24 and a beta of 1.91.

Wall Street Analyst Weigh In

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

Trending Headlines about Perimeter Solutions

Here are the key news stories impacting Perimeter Solutions this week:

• Positive Sentiment: Third-quarter revenue was $389.9 million, above the roughly $381.5 million analyst estimate. Adjusted EBITDA was $223.5 million, which the company attributed to continued execution on its value drivers and recent acquisitions. Company earnings release
• Neutral Sentiment: The company outlined an annual capital-spending plan of $30 million to $40 million. This signals continued investment, though it also means ongoing capital requirements. Capex plan and PDI outlook
• Negative Sentiment: Adjusted EPS of $0.85 fell short of analyst estimates of $0.95–$0.96, tempering the revenue beat. Management also expects a period of “distressed adjusted EBITDA” at PDI, a business-level concern investors may monitor. Q3 earnings miss

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.