The company posted a Q2 net loss, reversing a net profit from the prior-year period
Quarterly results were impacted by scaling costs, Panama plant training, and the absence of a prior R&D payment
Result drivers
Scaling costs - The company said costs from scaling food grade contracts impacted Q2 results, while revenue from scaling has not yet fully materialized
Panama plant training - Training and development costs at the Panama plant affected results, with revenue lagging costs
ENP division seasonality - Q2 is the weakest quarter for the ENP division, according to CEO Daniel B. O’Brien
Absence of R&D payment - The prior-year period included a $2.5 mln R&D payment that was not repeated in the current quarter
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 105% above its August 13 closing price of $5.00
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 14 three months ago
