Flotek Industries Second Quarter Earnings PREVIEW

Flotek Industries, Inc. (NYSE:FTK) will unveil its latest earnings on Wednesday, August 8, 2012. Flotek Industries is a global supplier of drilling and production related products and services to the oil and gas industry.

Flotek Industries, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 20 cents per share, a rise of fivefold from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 19 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 20 cents during the last month. Analysts are projecting profit to rise by 105.6% compared to last year’s 74 cents.

Past Earnings Performance: Last quarter, the company reported profit of 26 cents per share versus a mean estimate of net income of. The company has beaten estimates for the past three quarters.

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A Look Back: In the first quarter, profit fell 65.2% to $3.6 million (7 cents a share) from $10.4 million (13 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 49.7% to $79.2 million from $52.9 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.1 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 3.92 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased more than twofold to $95.4 million while assets decreased 20.6% to $104.9 million.

Wall St. Revenue Expectations: On average, analysts predict $77.8 million in revenue this quarter, a rise of 39.2% from the year-ago quarter. Analysts are forecasting total revenue of $330.6 million for the year, a rise of 27.8% from last year’s revenue of $258.8 million.

Key Stats:

The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 68.7% over the last four quarters.

Stock Price Performance: Between May 8, 2012 and August 2, 2012, the stock price fell $3.47 (-26.8%), from $12.93 to $9.46. The stock price saw one of its best stretches over the last year between April 23, 2012 and May 2, 2012, when shares rose for eight straight days, increasing 17.9% (+$2.16) over that span. It saw one of its worst periods between May 11, 2012 and May 18, 2012 when shares fell for six straight days, dropping 17.5% (-$2.22) over that span.

Analyst Ratings: Among a limited number of analysts, three rate it as a buy, none rate it as a sell and none rate it a hold to give indications of a bullish outlook.

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

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