Flotek Industries Earnings: Here’s Why the Stock is Down Now

Flotek Industries Inc. (NYSE:FTK) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 1.81%.

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Flotek Industries Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 114.29% to $0.15 in the quarter versus EPS of $0.07 in the year-earlier quarter.

Revenue: Decreased 1.26% to $78.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Flotek Industries Inc. reported adjusted EPS income of $0.15 per share. By that measure, the company missed the mean analyst estimate of $0.18. It missed the average revenue estimate of $79.13 million.

Quoting Management: “Flotek’s performance in the first quarter provides a solid base from which to continue our industry-leading growth initiatives in 2013,” said John Chisholm, Flotek’s Chairman, President and Chief Executive Officer. “We are pleased with our results, especially given the more challenging operating environment over the past twelve months. That said, the entire Flotek team believes our innovative chemistries and other products can and will continue to be accepted into new markets at a more rapid pace in the coming months. We believe the opportunities ahead will provide consistent, positive growth in revenue and profits throughout the balance of the year.”

Key Stats (on next page)…

Revenue increased 1.96% from $76.7 million in the previous quarter. EPS increased 15.38% from $0.13 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.22 to a profit $0.21. For the current year, the average estimate has moved down from a profit of $0.94 to a profit of $0.88 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)