What: Shares of oil field services company Flotek Industries Inc (FTK -1.04%) 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.
