Canada's Flexible Solutions Q2 revenue falls on one-time R&D drop, shipment delays
Canada's Flexible Solutions Q2 revenue falls on one-time R&D drop, shipment delays
Overview
Canada biodegradable polymer maker's Q2 revenue fell 35% yr/yr to $7.4 mln
Revenue drop due to lack of one-time R&D revenue, poor Florida LLC sales, and shipment delays
Company expects to recover business after exiting Florida LLC and taking direct control of sales
Co will report complete financial results after market close on August 14
Outlook
Company did not provide specific guidance for future quarters or the full year
Result Drivers
ONE-TIME R&D REVENUE - Q2 revenue in prior year included a $2.5 mln one-time R&D services contribution that did not repeat, per CEO Dan O’Brien
FLORIDA LLC SALES - Poor sales from the Florida LLC, which the company has exited, weighed on Q2 revenue, per CEO Dan O’Brien
SHIPMENT DELAYS - Some orders from Q2 were delayed and shipped in Q3, further reducing Q2 revenue, per CEO Dan O’Brien
Company press release: ID:nGNX3t69n
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| $7.40 mln | $12.73 mln (2 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the specialty chemicals peer group is "buy."
Wall Street's median 12-month price target for Flexible Solutions International Inc is $10.25, about 75.2% above its July 20 closing price of $5.85
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago
Reuters Recommended Reads
July 20 - Sweden's Hexpol Q2 sales, operating profit beat estimates
July 20 - Canada's Saturn Oil & Gas posts prelim Q2 petroleum and natural gas revenue of C$359 mln
July 20 - Canada's Altius Minerals Q2 royalty revenue attributable more than doubles on higher prices
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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