Flotek Industries (FTK) shares soared 9.2% in the last trading session to close at $16.55. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 5.7% gain over the past four weeks.
The surge in Flotek's stock can be attributed to its impressive Q1 earnings, with EPS surpassing estimates by 183% and revenue climbing 37% year-over-year, fueled by strong performance across its green chemistry and data analytics segments. The company also raised its full-year guidance, completed a strategic $160 million asset acquisition and received bullish analyst revisions. Flotek develops specialty chemicals tailored for both domestic and international energy producers, as well as oilfield service companies. With rising institutional interest, Flotek is increasingly viewed as a tech-enabled standout in an otherwise weak energy sector, with lower operational costs playing a key role in driving its growth.
This oilfield services company is expected to post quarterly earnings of $0.10 per share in its upcoming report, which represents a year-over-year change of +66.7%. Revenues are expected to be $48.11 million, up 4.2% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Flotek Industries, the consensus EPS estimate for the quarter has been revised 9.5% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on FTK going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Flotek Industries belongs to the Zacks Oil and Gas - Field Services industry. Another stock from the same industry, Schlumberger (SLB), closed the last trading session 0.5% higher at $35.69. Over the past month, SLB has returned -1.6%.
Schlumberger's consensus EPS estimate for the upcoming report has changed -1.6% over the past month to $0.77. Compared to the company's year-ago EPS, this represents a change of -9.4%. Schlumberger currently boasts a Zacks Rank of #3 (Hold).
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Flotek Industries, Inc. (FTK): Free Stock Analysis Report Schlumberger Limited (SLB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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