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 energy and mining supplier Flotek Industries (NYSE:FTK) fell 14% in early trading, after reporting earnings.
So what: Revenue rose 4.7% in the quarter, to $78.6 million, but net income dropped by 45%, to $0.19 per share. Analysts expected earnings of $0.21, so they were a little disappointed by the results.
Now what: It's been a tough quarter across the board in the sector, and many suppliers have performed even worse than Flotek. The challenge is that energy prices are low, so explorers aren't drilling at the rate they once were. I'd take a slightly cautious approach but, with shares trading at 10 times forward earnings estimates, I don't think that it's time to panic.
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