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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of drilling services provider Flotek Industries (NYSE: FTK ) rose 14% today after it reported earnings.
So what: Second-quarter revenue rose 40% from a year ago to $78.3 million and net income jumped from $2.1 million to $13.2 million, or $0.25 per share. The results crushed analyst estimates of $72.7 million in revenue and earnings per share of $0.20.
Now what: Increased drilling in North America has been driving the company's results and the strong growth shows how well the company has been able to capture new business. Management expects the second half of the year to be strong as Canadian drilling picks up after weather challenges. I think the company's current price of 16 times 2012 earnings estimates will look cheap by the end of the year and the stock can continue to move higher after these impressive results.
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