What: Shares of oil field services company Flotek Industries Inc (NYSE:FTK) jumped as much as 46% today after the company reported much better than expected earnings.
So what: Second-quarter revenue increased 5.6% sequentially to $87 million and on an adjusted basis the company made a $0.02-per-share profit. That easily surpassed the $0.06-per-share loss Wall Street had expected and showed that a turnaround may come faster than most investors expected. Expectations were for a loss of $0.15 per share this year, but it's now possible that it could make a profit for the full year.
Now what: In an energy industry that seems to be deteriorating in 2015, it was a relief to see Flotek reporting a profit on an adjusted basis. John Chisholm, Flotek's CEO, also said that CnF chemistry is reaching a "tipping point" where drillers consider it essential to maximize revenues from wells. That's great news for future demand, and considering the momentum at the start of 2015, this is a company that looks to be one of only a few in a position of strength in energy today.
Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.