PRM Earnings Prediction
The chart below shows how PRM performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PRM sees a -5.50% change in stock price 10 days leading up to the earnings, and a -2.12% change 10 days following the report. On the earnings day itself, the stock moves by -0.17%. This data can give you a slight idea of what to expect for the next quarter's release.
PRM Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
86.23M
45.04%
-70.10%
Gross Margin
32.65%
179.06%
-43.77%
Operating Margin
76.89%
770.94%
-763.99%
Net Margin
167.19%
850.74%
-640.72%
EPS
0.98
1188.89%
-260.66%
No Data Available
PRM Earnings Analysis
Perimeter Solutions SA Corporation (PRM.N) Earnings Conference Call
Positive
Earnings Surprise Q4 2024: Perimeter Solutions, SA reported a strong Q4 2024 earnings, beating expectations with an EPS of $0.896 compared to the expected $-0.1.
EBITDA Growth Achievement: The company achieved a consolidated adjusted EBITDA of $280 million for 2024, nearly doubling from $141 million in 2021, reflecting a 26% CAGR over three years.
EBITDA Margin Expansion: Adjusted EBITDA margin expanded by approximately 1,100 basis points over the three-year period, indicating improved operational efficiency.
Fire Safety Revenue Surge: The Fire Safety segment saw a remarkable 72% increase in Q4 revenue to $60.7 million, with full-year revenue growing 93% to $436.3 million.
Fire Safety Segment Growth: Adjusted EBITDA for the Fire Safety segment rose 289% in Q4 to $27.2 million, contributing to a full-year figure of $240.1 million, an increase of 215%.
Specialty Products Sales Growth: The Specialty Products segment also performed well, with Q4 sales increasing 6% to $25.5 million and full-year sales growing 29% to $124.7 million.
Value Driver Success: The company successfully executed its value driver focused operating model, leading to significant revenue and EBITDA growth across segments.
Emergency Response Preparedness: Perimeter Solutions demonstrated strong operational preparedness during the January wildfires in Southern California, showcasing its ability to respond effectively to emergencies.
Strategic Acquisition Expansion: The company made a strategic acquisition of Intelligent Manufacturing Solutions for approximately $33 million, expanding its capabilities in the PCB market.
Share Repurchase and ROI: Perimeter Solutions repurchased approximately 3 million shares in 2024 at an average price of $4.81, representing a 160% return on investment.
Free Cash Flow Generation: The company generated free cash flow of $172.9 million in 2024, validating its operational strategy and providing capacity for future M&A activities.
Negative
GAAP Loss Per Share: Despite beating earnings expectations, the company reported a GAAP loss per share of $0.04 for the full year 2024, indicating underlying financial challenges.
Earnings Quality Discrepancy: The adjusted EPS for Q4 2024 was only $0.13, which is significantly lower than the reported EPS of $0.90, suggesting discrepancies in earnings quality.
Capital Expenditure Increase: The company experienced a significant increase in capital expenditures, with a target of $15 million to $20 million annually, which may strain cash flow in the future.
Fire Safety Revenue Surge: While the Fire Safety segment saw a 72% revenue increase, this was largely attributed to a return to normal fire season conditions, raising concerns about sustainability in less favorable years.
Impact of Wildfire on Performance: The company acknowledged that the 2024 fire season was impacted by a single large wildfire, which may skew perceptions of overall performance and market conditions.
Operational Expenditures Impact: The increase in operational expenditures (OpEx) for R&D and customer-facing activities may not yield immediate returns, potentially affecting short-term profitability.
M&A Growth Risks: The company’s reliance on M&A for growth, as indicated by the acquisition of Intelligent Manufacturing Solutions, introduces integration risks and uncertainties regarding future performance.
PRM FAQs
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PRM Earning Call Sentiment
Perimeter Solutions, SA (NYSE:PRM) Q4 2024 Earnings Call Transcript
PRM.N
-7.58%Positive
The earnings call presents strong financial performance with record high revenue, EPS beat, and substantial EBITDA growth. Despite some uncertainties in capital allocation and M&A risks, the optimistic outlook on fire safety and specialty products, along with a successful share repurchase program, suggests positive investor sentiment. The market cap of approximately $1.1 billion indicates a moderate reaction, leading to a prediction of a positive stock price movement of 2% to 8%.
