Flotek Industries (NYSE:FTK) Stock Sees Pressure After Earnings
The announcement of quarterly financial results can move the stock of a company either way depending on the sentiments of investors and in case of Flotek Industries (NYSE:FTK), the stock actually declined.
Market Stats
On Tuesday, FTK stock fell 9% at $1.14 with more than 386k shares, compared to its average volume of 333k shares. The stock has moved within a range of $1.1200 – 1.2200 after opening the trade at $1.22.
Earnings Review
The company had announced its financial results for the third fiscal quarter that had ended on September 30, 2021 back on November 8 and yesterday, the stock tanked by as much as 9%. Hence, it might be a good time to take a look at some of the highlights from the company’s financial results. In the third quarter, Flotek managed to generate revenues of $10.2 million.
While the revenues reflected a jump of as much as 10.9% on a sequential basis from the $9.2 million the company generated in the second quarter of 2021, it worked out to a 20.1% year on year decline. In the prior year period, the company had managed to bring in revenues of as much as $12.7 million.
The significant drop in revenues year on year was mainly brought on by the loss of two significantly large energy clients. On the other hand, the consolidated operating expenses actually dropped by as much as 55.4% year on year to $5.4 million.
Key Quote
John W. Gibson, Jr., Chairman, President, and Chief Executive Officer, stated, “I’m pleased to report that our revenues for the third quarter are up approximately 11% compared to the second quarter. Customer growth and diversification continue to improve as revenue from new or non-core customers grew 34%, while the total number of customers grew by 22% sequentially in our energy chemistry technologies business. Additionally, our data analytics business reached two important milestones during the third quarter by obtaining international certifications for our Verax analyzers and launching a new patent-pending Advanced Interface Detection Algorithm (AIDA) application.”
Traders Corner
FTK stock is trading below the 20-Day and 50-Day Moving averages of $1.16 and $1.20 respectively. Moreover, the stock is trading below the 200-Day moving average of $1.68. The stock is down 27% in the past 3-month.