Perimeter Solutions, SA (PRM) Reports Q4 Loss, Tops Revenue Estimates

Perimeter Solutions, SA (PRM) came out with a quarterly loss of $0.09 per share versus the Zacks Consensus Estimate of a loss of $0.11. This compares to loss of $0.38 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 18.18%. A quarter ago, it was expected that this company would post earnings of $0.16 per share when it actually produced earnings of $0.31, delivering a surprise of 93.75%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Perimeter Solutions, SA, which belongs to the Zacks Chemical - Specialty industry, posted revenues of $59.46 million for the quarter ended December 2023, surpassing the Zacks Consensus Estimate by 32.12%. This compares to year-ago revenues of $41.27 million. The company has topped consensus revenue estimates two times 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.

Perimeter Solutions, SA shares have added about 22.8% since the beginning of the year versus the S&P 500's gain of 4.4%.

What's Next for Perimeter Solutions, SA?

While Perimeter Solutions, SA 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 Perimeter Solutions, SA: mixed. 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 #3 (Hold) for the stock. So, the shares are expected to perform in line with 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 -$0.15 on $50.5 million in revenues for the coming quarter and $0.28 on $458 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 top 35% 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.

One other stock from the same industry, Daqo New Energy (DQ), is yet to report results for the quarter ended December 2023. The results are expected to be released on February 28.

This solar panel parts maker is expected to post quarterly earnings of $0.84 per share in its upcoming report, which represents a year-over-year change of -82.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Daqo New Energy's revenues are expected to be $529.4 million, down 38.7% from the year-ago quarter.

Top 5 ChatGPT Stocks Revealed

Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.

Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”

Download Free ChatGPT Stock Report Right Now >>

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

Perimeter Solutions, SA (PRM) : Free Stock Analysis Report

DAQO New Energy Corp. (DQ) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.