Benzinga | Nov 13, 2020 10:06AM EST

Earnings Preview: Flotek Industries

Flotek Industries (NYSE: FTK) announces its next round of earnings this Monday, November 16. Here is Benzinga's everything-that-matters guide for this Monday's Q3 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Wall Street analysts see Flotek Industries reporting a quarterly loss of $0.08 per share on sales of $34.60 million. In the same quarter last year, Flotek Industries reported EPS of $0.18 on revenue of $21.88 million.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The analyst consensus estimate would represent a 55.56% increase in the company's EPS figure. Revenue would be up 58.14% on a year-over-year basis. Flotek Industries's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019EPS Estimate -0.12 -0.16 -0.2 -0.23EPS Actual -0.15 -0.19 -0.3 -0.18Revenue Estimate 32.60 M 30.70 M 31.00 M 31.80 MRevenue Actual 8.88 M 19.42 M 19.53 M 21.88 M

Stock Performance

Over the last 52-week period, shares are up 38.73%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. Flotek Industries is scheduled to hold the call at 12:00:00 ET and can be accessed here.