Flotek Industries (FTK)
Results in Line Absent Nonrecurring Items, All Signs Point To Improvements in 2022
Flotek Industries, Inc. creates solutions to reduce the environmental impact of energy on air, water, land and people. Flotek Industries, Inc. is a technology-driven, specialty chemistry and data company that helps customers across industrial, commercial and consumer markets improve their Environmental, Social and Governance performance. Flotek’s Chemistry Technologies segment develops, manufactures, packages, distributes, delivers, and markets high-quality cleaning, disinfecting and sanitizing products for commercial, governmental and personal consumer use. Additionally, Flotek empowers the energy industry to maximize the value of their hydrocarbon streams and improve return on invested capital through its real-time data platforms and green chemistry technologies. Flotek serves downstream, midstream and upstream customers, both domestic and international. Flotek is a publicly traded company headquartered in Houston, Texas, and its common shares are traded on the New York Stock Exchange under the ticker symbol “FTK.” For additional information, please visit Flotek’s web site at www.flotekind.com.
Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Flotek Industries reported 2021-3Q results (excluding nonrecurring items) that were generally in line with expectations. Flotek reported revenues of $10.2 million, in line with our estimate of $10.1 million. Income from operations was $0.6 million, which was well above our expectations for a loss of $5.6 million. The primary difference was due to a $7.6 million reduction in operating costs stemming from a positive settlement. EPS was $0.01 but would have been ($0.10) absent the settlement, slightly below our ($0.08) projection.
Flotek is setting itself up for improved results in 2022. Management has focused on growing and stabilizing topline results. It has expanded its salesforce and put them on incentive-based compensation, signed new distribution agreements, emphasized subscription-based sales, introduced new products geared towards international sales, and held C-suite meetings to highlight the environmental benefits …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.