Flotek Industries Inc. Earnings Cheat Sheet: Margins Expand For Fifth Straight Quarter

Flotek Industries Inc. (NYSE:FTK) climbed to a profit in the third quarter and beat Wall Street’s expectations in the process. Flotek Industries 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 Third Quarter

Results: Reported a profit of $17.9 million (35 cents per diluted share) in the quarter. Flotek Industries Inc. had a net loss of $1.2 million or a loss 9 cents per share in the year earlier quarter.

Revenue: Rose 87.7% to $75.1 million from the year earlier quarter.

Actual vs. Wall St. Expectations: FTK beat the mean analyst estimate of 9 cents per share. It beat the average revenue estimate of $60 million.

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 83%, 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 0.7 percentage point to 40.9% from the year earlier quarter. Over that span, margins have grown on average 7.7 percentage points per quarter on a year-over-year basis.

The company topped expectations last quarter after falling short of forecasts in the second quarter with net income of 4 cents versus a mean estimate of net income of 5 cents per share.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the fourth quarter is 11 cents per share, up from 9 cents ninety days ago. At 31 cents per share, the average estimate for the fiscal year has fallen from 33 cents ninety days ago.

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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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)