Flotek Industries Earnings Cheat Sheet: Margins Expand Again

Flotek Industries, Inc. (NASDAQ:FTK) reported its results for the second quarter. Flotek Industries, Inc. is a global supplier of drilling and production related products and services to the oil and gas industry.

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Flotek Industries Earnings Cheat Sheet for the Second Quarter

Results: Swung to a profit of $2.1 million (5 cents per diluted share) in the quarter. Flotek Industries, Inc. had a net loss of $6.2 million or a loss 28 cents per share in the year earlier quarter.

Revenue: Rose 79.4% to $55.9 million from the year earlier quarter.

Actual vs. Wall St. Expectations: FTK fell in line with the mean analyst estimate of 5 cents per share. It beat the average revenue estimate of $54.5 million.

Quoting Management: “The first six months of 2011 provided significant growth opportunities for Flotek,” said John Chisholm, Chairman and President of Flotek. “Our continued focus on leading oilfield technologies combined with our renewed emphasis on exceptional service to our customers has repositioned Flotek as a leader in specialty oilfield chemicals and drilling products. We continue to see tremendous opportunities for future growth that motivate the entire Flotek team to continually accelerate innovation – from leadership in our world class Houston chemical laboratories to finding new and better ways to support our customers in the field with new products, timely deliveries and unprecedented service.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 72%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 93.3% from the year earlier quarter.

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 3.4 percentage points to 39.8% from the year earlier quarter. Over that span, margins have grown on average 11.7 percentage points per quarter on a year-over-year basis.

The company fell in line with estimates last quarter after topping expectations in the previous two quarters. In the first quarter, it topped the mark by 11 cents, and in the fourth quarter of the last fiscal year, it was ahead by 11 cents.

Competitors to Watch: Cameron Intl. Corp. (NYSE:CAM), Dril-Quip, Inc. (NYSE:DRQ), National-Oilwell Varco, Inc. (NYSE:NOV), Baker Hughes Incorporated (NYSE:BHI), Oil States Intl., Inc. (NYSE:OIS), Lufkin Industries, Inc. (NASDAQ:LUFK), FMC Technologies, Inc. (NYSE:FTI), Bolt Technology Corp. (NASDAQ:BOLT), Tesco Corporation (NASDAQ:TESO), and Newpark Resources, Inc. (NYSE:NR).

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(Source: Xignite Financials)