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What Analysts Expect from Flotek Industries’ 3Q17 Earnings

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Flotek Industries’ 3Q17 earnings estimates

In 3Q17, analysts expect $0.02 adjusted earnings per share (or EPS) for Flotek Industries (FTK). This means Wall Street analysts expect FTK to switch over to an adjusted profit in 3Q17 compared to its 2Q17 adjusted loss of $0.02 per share. 

A higher operating margin in the company’s Energy Chemistry Technology segment can improve its earnings in 3Q17. However, lower revenues in the Consumer and Industrial Chemistry Technologies segment can keep FTK’s earnings growth in check. FTK is expected to release its 3Q17 financial results between October 31, 2017, and November 7, 2017.

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Management revised down 3Q17 guidance

On September 25, FTK’s management revised down its 3Q17 revenue guidance by $5 million and revised up its cost guidance by nearly $1 million. The changes in guidance were brought about by Hurricanes Harvey and Irma, as well as shortages of certain raw materials supplied by vendors. 

Citrus crop production is expected to be damaged by the hurricanes, leading to a delay in raw material price reductions.

FTK’s 3Q17 revenue estimates

In 3Q17, analysts expect Flotek Industries’ revenues to increase 1% over 2Q17 to $86.2 million. In 2Q17, FTK’s revenues generated fell short of the sell-side analysts’ estimates.

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Flotek Industries’ earnings versus estimates

In 2Q17, Flotek Industries’ adjusted EPS fell short of analysts’ consensus EPS. On an average, its adjusted EPS fell short of consensus EPS in the past 13 quarters, as noted in the graph above. 

Flotek Industries comprises 0.07% of the iShares Micro-Cap ETF (IWC). IWC rose 21% in the past one-year period versus the 66% fall in FTK’s stock price during the period. The S&P 500 Index (SPX-INDEX) has risen 20% in the past year.

Analysts’ estimates for FTK’s peers

Analysts expect Schlumberger’s (SLB) 3Q17 adjusted earnings to improve 37% compared to its 2Q17 adjusted earnings. You can learn more in Market Realist’s A Pre-Earnings Analysis of Schlumberger before 3Q17

Analysts expect Superior Energy Services’ (SPN) 3Q17 adjusted earnings to decrease to -$0.32 over its 2Q17 earnings of -$0.41. 

Core Laboratories’ (CLB) 3Q17 adjusted earnings are expected to deteriorate 14% compared to its 2Q17 adjusted earnings. In this context, please read Market Realist’s The Top and Bottom of Oilfield Service Stocks in 3Q17.

Series highlights

In this series, we’ll discuss Flotek Industries’ (FTK) value drivers, industry indicators affecting the company, and analysts’ target prices. Next, we will discuss FTK’s management outlook in the past few quarters.

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