Shares of Flotek Industries (NYSE:FTK) are down 16.3% as of 11:15 a.m. EST today. Much today's decline has to do with Flotek's earnings that fell into the loss column for the quarter.
Flotek reported a net loss of $0.06 per share compared to a $0.03 per share loss this time last year. Revenue for the quarter came in at $79.5 million, which was a 23% increase from last year but a slight declined compared to the second quarter. Just for reference, Wall Street analyst estimates had Flotek producing a $0.02 per share gain in the quarter.
Mangement noted that some of that weakness was attributed to Hurricanes Harvey and Irma. In the case of Harvey, it reduced overall customer demand, whereas Irma damaged citrus crops and increased citrus oil costs higher than originally estimated.
Flotek's business continues to underperform, even after it sold some of its lower margin oilfield equipment and services businesses that were a drag on profitability. While the company has an innovative product that has proven to improve well economics for producers, it hasn't been able to get enough customers signed up to generate meaningful bottom-line results. This is even more frustrating when other oil services companies have reported better than expected results from North American shale drilling.
Perhaps management will be able to figure this one out. Until it does, though, it's hard to find a reason to be interested in this stock.