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What Do Analysts Expect from Flotek’s 4Q16 Earnings?

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Flotek’s 4Q16 earnings estimates

In 4Q16, analysts expect a ~$0.04 adjusted loss per share for Flotek Industries (FTK). This means Wall Street analysts expect FTK’s adjusted loss to improve in the coming quarter from the 3Q16 adjusted loss of $0.05 per share. Higher US rig count, market share growth of FTK’s CnF suite of completion chemistries, and the introduction of its pressure reducing chemistry technology could brighten FTK’s 4Q16 results. However, concerns over debt load and debt covenant issues will continue to keep FTK pressured. FTK is expected to hold its 4Q16 earnings conference call on February 2.

Earlier, the falling rig count had sent FTK’s 1Q15 adjusted earnings crashing to a $0.03 per share loss. From 3Q15 through 3Q16, adjusted loss dipped a further 2.2x, reflecting a depressed energy market environment. FTK makes up 0.14% of the iShares Micro-Cap ETF (IWC).

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Flotek Industries’ earnings versus estimates

In 3Q16, Flotek Industries’ adjusted loss fell short of analysts’ consensus estimates. As noted in the graph above, Flotek Industries’ adjusted earnings per share (or EPS) fell short of estimates in many quarters in the past. On average, adjusted EPS fell short of the consensus EPS by ~10% in the past 13 quarters.

What do analysts expect for FTK’s peers?

In comparison, Fairmount Santrol Holdings’ (FMSA) 4Q16 estimated loss is expected to deteriorate over its 3Q16 adjusted earnings. Wall Street analysts expect Patterson-UTI Energy’s (PTEN) 4Q16 adjusted loss to improve 3% over 3Q16. Nabors Industries’ (NBR) 4Q16 adjusted loss is also expected to improve marginally in 4Q16 over 3Q16. Read more about Wall Street analysts’ estimates for the oilfield services companies in Market Realist’s Wall Street Picks: The Best and Worst Oilfield Service Stocks.

Series overview

In this series, we’ll discuss Flotek Industries’ management guidance, value drivers, target prices, and the industry indicators that affect its performance. Next, we’ll discuss how FTK’s financial performance transpired in the past quarters.

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