Why is Perimeter Solutions (PRM) stock rising today?

By - Rupam Roy


  • The PRM stock soared nearly 20 per cent on November 4.
  • The company reported its Q3 FY22 earnings results on Friday before the market opened.
  • Perimeter Solutions' net sales increased by one per cent YoY in the first nine months of the year.

The stocks of Perimeter Solutions, SA (NYSE: PRM) were among the top percentage movers in the morning trading session on Friday, November 4, as seen by the significant jump in its price.

The PRM stock was up nearly 20 per cent just after the US financial market opened on November 4, following the release of its latest quarterly earnings results.

So, let's take a quick look at the latest financial release of the company and see how it has performed in the recent quarter.

Third-quarter financial highlights of Perimeter Solutions:

Perimeter Solutions is a chemical company that specializes in developing and manufacturing fire retardants and firefighting foam. The company claims that its products are supported by several firefighting and training services.

The company reported its latest quarterly earnings on November 4, before the opening bell, showing its net sales tumbling on a year-over-year (YoY) basis in Q3 FY22, from the year-ago period, due to mild fire season in North America.

Perimeter Solutions’ revenue totaled US$ 160.5 million in the quarter, down by 18 per cent from US$ 195.4 million in Q3 FY21. Its sales from the fire safety segment fell 29 per cent to US$ 122 million in Q3 FY22, from US$ 172.4 million in the preceding year’s third quarter.

However, the specialty product sales of the fire retardants producer rose 68 per cent on an annual basis to US$ 38.5 million. The St. Louis-based firm incurred a net income of US$ 78.7 million, or US$ 0.45 per diluted share in the latest quarter, signifying an increase of US$ 26.7 million from US$ 52 million, or US$ 0.98 per diluted share in Q3 FY21.

The company's adjusted EBITDA was down a quarter of a percentage to US$ 75.6 million in Q3 FY22, from US$ 100.4 million in the year-ago quarter.

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Bottom line:

The trading price of the PRM stock was up 19.90 per cent at 9:43 am ET on November 4, to trade at US$ 8.585, and its volume was about 69,902 during writing. Meanwhile, the stock of the firm chemical firm closed at US$ 7.16 on Thursday, November 3.

Meanwhile, Perimeter Solutions's net sales rose one per cent YoY to US$ 319.2 million during the YTD period through Q3 FY22.