Flexible Solutions International Inc. (FSI) Reports Q1 Loss, Lags Revenue Estimates
This quarterly report represents an earnings surprise of -140%. A quarter ago, it was expected that this company would post earnings of $0.05 per share when it actually produced earnings of $0.05, delivering no surprise.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Flexible Solutions International , which belongs to the Zacks Chemical - Specialty industry, posted revenues of $7.47 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 26.73%. This compares to year-ago revenues of $9.23 million. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Flexible Solutions International shares have added about 19.9% since the beginning of the year versus the S&P 500's gain of 0.2%.
While Flexible Solutions International has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Flexible Solutions International: unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.07 on $11.61 million in revenues for the coming quarter and $0.30 on $48.78 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Chemical - Specialty is currently in the bottom 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
CSW Industrials (CSWI), another stock in the same industry, has yet to report results for the quarter ended March 2025. The results are expected to be released on May 22.
This industrial products and coatings maker is expected to post quarterly earnings of $2.23 per share in its upcoming report, which represents a year-over-year change of +9.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
CSW Industrials' revenues are expected to be $232 million, up 10% from the year-ago quarter.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Flexible Solutions International Inc. (FSI) : Free Stock Analysis Report
CSW Industrials, Inc. (CSWI) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
25 minutes ago
- Business Insider
3 Economic Reports That Could Affect Your Portfolio This Week, August 18-22, 2025
Stocks ended the week on a soft note, still managing to lock in back-to-back weekly gains. The S&P 500 (SPX) rose 0.94% for the week, and the Nasdaq-100 (NDX) inched up 0.43%. The Dow Jones Industrial Average (DJIA) was the standout, delivering a weekly gain of 1.74%. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. After a red Monday, all three major indexes reached all-time highs on Tuesday. This followed in-line CPI data, which bolstered bets that the Fed would deliver its first rate cut of 2025 in September – traders have priced in nearly a 100% chance of a 25-bps easing. Stocks extended gains on Wednesday: the S&P 500 and Nasdaq hit new ATHs again amid remarks from Treasury Secretary Scott Bessent urging a 50-bps cut based on downward revisions in payroll data. Wall Street analysts began forecasting up to three cuts this year, citing a softer labor market, limited tariff pass-through to consumers, and the appointment of Trump's temporary Fed board pick. But those forecasts were questioned Thursday when PPI, which tracks wholesale price trends, came in hotter than expected, denting sentiment and clouding the Fed outlook. Other economic reports pulled markets in opposing directions: July's industrial production was lackluster – although not recession-bellwether weak – while retail sales beat forecasts, underscoring resilient consumer demand despite high borrowing costs. Meanwhile, the UoM consumer sentiment unexpectedly slipped and inflation expectations rose, muddying the outlook for Fed cuts in September. With mixed inflation and consumer data re-injecting uncertainty into the Fed policy outlook, all eyes now turn to Jackson Hole for the annual confab. Jerome Powell's speech on August 22 is the marquee event, expected to instantly influence markets. A dovish tone could broaden the rally, boosting small caps, rate-sensitive areas, and tech. A hawkish stance – highlighting inflation risks or caution – could trigger sharp corrections and volatility, especially in growth and rate-sensitive sectors. Three Economic Reports Here are three key economic reports that could affect your portfolio this week, in addition to the widely anticipated speech by Jerome Powell at the Jackson Hole Economic Policy Symposium. For a full listing of additional economic reports, check out the TipRanks Economic Calendar. » August Philadelphia Fed Manufacturing Survey – Thursday, 8/21 – This report measures manufacturing conditions in the survey area (Philadelphia, New Jersey, and Delaware) and is considered an accurate leading indicator for two nationwide reports: the Manufacturing PMI and ISM Manufacturing Index. » August S&P Global Manufacturing PMI and Services PMI (preliminary readings) – Friday, 8/22 – PMI indices are leading economic indicators used by economists and analysts to gain timely insights into changing conditions, as the direction and rate of change in PMIs usually precede shifts in the broader economy. » July Existing Home Sales – Friday, 8/22 – This report tracks sales volumes and prices of existing single-family homes, condos, and co-ops nationwide. Existing homes account for over 90% of total U.S. home sales, making this a key measure of housing market health and its influence on overall economic activity.
Yahoo
an hour ago
- Yahoo
How (and Why) To Stay in the Market Even at All-Time Highs
One of the most famous mantras in the investment world is to 'buy low and sell high.' With the S&P 500 setting record after record in 2025 — and valuations reaching stratospheric levels — it might seem like buying now is the exact wrong thing to do. Read More: Find Out: But there are still compelling reasons to stay in the market, even at all-time highs. Here's why — and how you can do it. The Market Consistently Makes New 'All-Time' Highs Markets don't go up in a straight line, but history shows the S&P 500 has always gone on to make new highs, no matter how severe a bear market it endures. The fact that the index is at an all-time high as of July 2025 means that by definition, all of its past bad days and bad years are now in the rear-view mirror. Investors who have held on — or even added to their positions — during prior downturns have been handsomely rewarded with the highest price in the index's history. Discover More: Market Technicians Love New Highs Technical research interprets past trading patterns to predict future market movements. Many technicians view a new market high as a 'breakout,' indicating future upside to come. Numerous other factors can help support this prediction, such as rising trading volume and increasing market breadth, but in its most simplistic form, technical analysis usually views a fresh market high as an indication that prices will continue to go higher. Timing the Market Leads To Underperformance If you could always buy at the stock market's low and sell at its high, yes, you'd have a great trading record that would significantly outperform the overall market. But history, along with the shattered portfolios of numerous traders before you, shows that doing that consistently is all but impossible. A more likely scenario is that you emotionally panic and sell your positions when the market is crashing and then start investing again after the market has made significant gains — right before the next bear market. Another common scenario is that you fear the S&P 500 is 'overvalued' and you sell all your positions as the market goes higher and higher. Missing out on even a few of the best days in the market is enough to keep your portfolio in a perpetual state of underperformance, but it's a relatively common occurrence among those trying to time the market. What Can You Do? Investing at market highs is something of a double-edged sword. On the one hand, it's a great time to be invested in the S&P 500, because it means your portfolio should also be at all-time highs. However, it can also be a bit nerve-wracking because valuations are stretched to their limit, and the market is 'priced for perfection' — meaning everything has to continue doing well to support those lofty prices. As fear of losing money is generally greater for investors than the joy from profiting, it's natural to feel a bit queasy when market prices are high. For most long-term investors, the best strategy is to stay the course. By investing consistently, regardless of the S&P 500's current condition, you end up with an average price that smooths out the market's ups and downs. If the market continues to go higher, you'll keep profiting from your investments, even the ones you made at a 'high' price. If the market falls, your ongoing investments will pick up shares at lower prices, leading to even greater profits in the future. Many advisors recommend that investors increase their contributions while markets are falling so they can benefit even more from 'on-sale' share prices. While perhaps not a perfect system, consistent investing is a much better option than trying to time the market based on emotion and instinct. That has proven time and time again to be a losing game in the long run. More From GOBankingRates New Law Could Make Electricity Bills Skyrocket in These 4 States I'm a Self-Made Millionaire: 6 Ways I Use ChatGPT To Make a Lot of Money 5 Strategies High-Net-Worth Families Use To Build Generational Wealth Mark Cuban Says Trump's Executive Order To Lower Medication Costs Has a 'Real Shot' -- Here's Why This article originally appeared on How (and Why) To Stay in the Market Even at All-Time Highs
Yahoo
2 hours ago
- Yahoo
Why Investors Never Seem To Earn the ‘Average' Market Return
Over the short-term, it's entirely possible to beat the return of the stock market, as measured by the S&P 500. The return of the S&P 500 index is a weighted average of its individual components, meaning by definition some of the stocks within the index outperform the 'average' return — and if you're an investor owning one of these stocks, you can beat the market average, as well. Find Out: Read More: But over the long run, topping the 'average' market return is exceedingly hard to do. Research from J.P. Morgan Asset Management shows that over the 20-year period from 1998 to 2017, the S&P 500 returned an average of 7.1% annually, while the average investor only posted gains of 2.6% annually, barely above inflation. Why the huge discrepancy? Here are the main reasons why it's so hard for investors to outperform. They Don't Stay Invested Investing can be an emotional business. When the market rallies, investors can get euphoric, throwing additional money in right as the market peaks. On the flip side, many investors get nervous and panic when the market sells off by 20% or more, dumping their stocks as the market approaches a low. Investors that merely hold onto their positions and ride them out for the long-term have a much better chance of matching or beating market averages than those who let emotions dictate their strategy. Try This: They Try To Time the Market The market typically undergoes a correction of 10% or more roughly every 2.5 years, while bear markets, defined by a drop of at least 20%, generally happen about every six years, according to American Century Investments. Theoretically, if you can sell your positions before these major market drops and buy back in at market lows, you could easily outperform the market. But the reality is that timing the market with precision is exceedingly hard to do. In most cases, those who try to make a living timing the market get whipsawed and end up underperforming the market averages. This is due in part to the fact that the bulk of market gains come from just a few days. From Jan. 1, 1999 through Mar. 31, 2025, a $10,000 investment in the S&P 500 index would have grown to $71,309, according to FactSet. But missing even a few of the best market days would result in considerably lower returns. Here's how much you'd have if you missed the best 10, 20, and 30 best days in the market over those past 26 years: Missing 10 best days: $32,682 Missing 20 best days: $19,242 Missing 30 best days: $12,298 Trying to time the market and missing even a few of the best days will annihilate your long-term returns. They Chase Hot Trends It takes patience to succeed at investing. Those who trade in and out of stocks trying to catch lightning in a bottle may succeed over the short run, but it's almost impossible to keep that up over time. Unfortunately, the popularization of 'meme' stocks and other trendy investment options in the financial press and on online message boards makes it seem like 'everyone else' is getting rich off these investment fads. This can instill a 'fear of missing out' (FOMO) among investors who may view 'buy-and-hold' as 'boring,' when in reality, slow and steady wins the race over the long run. They Pay Fees One advantage the market average will always have over investors is that it isn't susceptible to management fees. This requires investors to actually outperform the market simply to 'break even.' Even a low-cost S&P 500 index fund that charges a minuscule 0.03% management fee will significantly eat at returns over time. If you put $100,000 into such a fund and the index earns a 10% average annual return for 30 years, you'd come up about $15,000 short of the index. If you paid a 1% annual fee, which many actively managed equity funds charge, the shortfall would reach over $418,000. It's Hard To Pick Winning Stocks One way to avoid mutual fund and ETF fees is by owning individual stocks bought through a zero-commission broker. However, picking individual stocks comes with its own level of difficulty, as well. While owning individual stocks can lead to outperformance, it requires a level of skill that's hard to come by. One academic paper by Hendrik Bessembinder, Te-Feng Chen, Goeun Choi and K.C. John Wei found that from 1990 through 2018, 56% of U.S. stocks underperformed the essentially risk-free one-month Treasury bill. That's a terrible record and means that a handful of stocks provided the bulk of market returns — and picking the wrong ones could lead to definitively sub-par results. More From GOBankingRates 5 Ways Trump Signing the GENIUS Act Could Impact Retirees10 Unreliable SUVs To Stay Away From Buying This article originally appeared on Why Investors Never Seem To Earn the 'Average' Market Return
