Flowco (NYSE:FLOC) Releases Quarterly Earnings Results, Misses Estimates By $0.09 EPS

Flowco (NYSE:FLOC) issued its quarterly earnings results on Tuesday. The company reported $0.28 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.37 by ($0.09), FiscalAI reports. The company had revenue of $235.86 million for the quarter. Flowco had a net margin of 6.07% and a return on equity of 36.71%.

Here are the key takeaways from Flowco’s conference call:

• Positive Sentiment: Flowco delivered solid Q2 growth, with revenue up 13% sequentially to $236 million, adjusted EBITDA up 10% to $93.9 million, and margins near 40%; free cash flow was approximately $50 million.
• Positive Sentiment: The Valiant acquisition is performing ahead of expectations, with integration substantially complete and early cross-selling opportunities emerging across Flowco’s broader artificial-lift and production-optimization platform.
• Negative Sentiment: Production Solutions margins declined 229 basis points because of a less favorable mix and higher operating, maintenance, fuel, and lubricant costs. Management expects these cost pressures to continue into Q3, with limited ability to pass lubricant costs through to customers.
• Positive Sentiment: Management guided to Q3 adjusted EBITDA of $92 million to $98 million, while citing continued demand for production-optimization technologies, rising customer activity, and potential efficiency gains from AI-enabled fleet maintenance and operational data.
• Positive Sentiment: Flowco ended the period with leverage below one times and approximately $446 million of available credit capacity; the board also approved a one-time $0.14-per-share special dividend for Class A shareholders in addition to the regular $0.09 dividend.

Flowco Price Performance

Shares of NYSE FLOC traded down $0.25 during midday trading on Thursday, hitting $23.29. The stock had a trading volume of 255,357 shares, compared to its average volume of 621,463. The company has a quick ratio of 1.48, a current ratio of 3.09 and a debt-to-equity ratio of 1.00. The stock has a 50 day simple moving average of $21.38 and a 200-day simple moving average of $22.56. The company has a market capitalization of $2.10 billion, a PE ratio of 18.81 and a beta of 0.90. Flowco has a 1 year low of $14.03 and a 1 year high of $28.26.

Flowco Announces Dividend

The company also recently disclosed a special dividend, which will be paid on Monday, August 31st. Shareholders of record on Friday, August 21st will be paid a dividend of $0.14 per share. The ex-dividend date is Friday, August 21st. Flowco’s payout ratio is 29.03%.

Institutional Investors Weigh In On Flowco

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Wellington Management Group LLP purchased a new position in Flowco in the 4th quarter worth approximately $12,753,000. Emerald Advisers LLC acquired a new stake in shares of Flowco in the first quarter valued at approximately $7,971,000. Bank of America Corp DE boosted its stake in Flowco by 327.4% during the first quarter. Bank of America Corp DE now owns 472,195 shares of the company’s stock worth $9,727,000 after buying an additional 361,721 shares during the last quarter. First Eagle Investment Management LLC purchased a new stake in Flowco in the 4th quarter valued at $6,452,000. Finally, Walleye Capital LLC acquired a new stake in shares of Flowco in the 1st quarter worth $6,121,000.

Analyst Ratings Changes

Several analysts have recently commented on the stock. Zacks Research downgraded shares of Flowco from a “strong-buy” rating to a “hold” rating in a report on Monday, May 4th. Citigroup initiated coverage on shares of Flowco in a research report on Thursday, May 28th. They set a “neutral” rating and a $31.00 target price for the company. Jefferies Financial Group reaffirmed a “buy” rating and set a $33.00 price target on shares of Flowco in a research report on Thursday, May 7th. Weiss Ratings downgraded Flowco from a “hold (c)” rating to a “hold (c-)” rating in a research note on Monday, August 3rd. Finally, Piper Sandler lowered their price objective on Flowco from $32.00 to $31.00 and set an “overweight” rating on the stock in a research report on Tuesday, July 14th. Four analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat.com, Flowco has a consensus rating of “Moderate Buy” and an average price target of $29.20.

Flowco Company Profile

We are a leading provider of production optimization, artificial lift and methane abatement solutions for the oil and natural gas industry. Our products and services include a full range of equipment and technology solutions that enable our customers to efficiently and cost-effectively maximize the profitability and economic lifespan of the production phase of their operations. Our principal products and services are organized into two business segments: (i) Production Solutions; and (ii) Natural Gas Technologies.