A Glimpse of Perimeter Solutions's Earnings Potential

Perimeter Solutions PRM is set to give its latest quarterly earnings report on Thursday, 2025-05-08. Here's what investors need to know before the announcement.

Analysts estimate that Perimeter Solutions will report an earnings per share (EPS) of $0.01.

Anticipation surrounds Perimeter Solutions's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Historical Earnings Performance

In the previous earnings release, the company beat EPS by $0.19, leading to a 7.58% drop in the share price the following trading session.

Here's a look at Perimeter Solutions's past performance and the resulting price change:

Perimeter Solutions Share Price Analysis

Shares of Perimeter Solutions were trading at $10.52 as of May 06. Over the last 52-week period, shares are up 38.14%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Insights on Perimeter Solutions

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Perimeter Solutions.

The consensus rating for Perimeter Solutions is Buy, derived from 1 analyst ratings. An average one-year price target of $14.0 implies a potential 33.08% upside.

Understanding Analyst Ratings Among Peers

The analysis below examines the analyst ratings and average 1-year price targets of Ingevity, Minerals Technologies and Quaker Houghton, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Ingevity, with an average 1-year price target of $49.25, suggesting a potential 368.16% upside.
• Analysts currently favor an Buy trajectory for Minerals Technologies, with an average 1-year price target of $89.0, suggesting a potential 746.01% upside.
• Analysts currently favor an Neutral trajectory for Quaker Houghton, with an average 1-year price target of $147.25, suggesting a potential 1299.71% upside.

Insights: Peer Analysis

The peer analysis summary presents essential metrics for Ingevity, Minerals Technologies and Quaker Houghton, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

Perimeter Solutions ranks highest in Revenue Growth among its peers. It also leads in Gross Profit margin. However, it has the lowest Return on Equity.

About Perimeter Solutions

Perimeter Solutions Inc is a solutions provider for the Fire Safety and Specialty Products industries. The Company's products and operations are managed and reported in two operating segments. Its Fire Safety segment provides fire retardants and firefighting foams, as well as specialized equipment and services typically offered in conjunction with the Company's retardant and foam products. The Specialty Products segment includes operations that develop, produce and market products for non-fire safety markets. Specialty Products segment is Phosphorus Pentasulfide (P2S5) based lubricant additives. P2S5 is also used in pesticide and mining chemicals applications, and emerging electric battery technologies.

Perimeter Solutions: Financial Performance Dissected

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Perimeter Solutions's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 45.04%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Materials sector.

Net Margin: Perimeter Solutions's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 167.19%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 13.36%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Perimeter Solutions's ROA stands out, surpassing industry averages. With an impressive ROA of 5.91%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Perimeter Solutions's debt-to-equity ratio is below the industry average at 0.6, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for Perimeter Solutions visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.