Why Flotek Industries, Coherent, and National CineMedia Slumped Today
Wall Street celebrated another milestone on Wednesday, as the Dow Jones Industrials closed above the 22,000 mark for the first time ever. Helping to pull the average higher were gains related to favorable quarterly results from the stock market's largest company. Yet the majority of the Dow's 30 stocks actually posted declines today, and other major benchmarks finished very close to unchanged as sentiment across the market was quite mixed. Some individual companies reported particularly bad news that sent their shares plunging. Flotek Industries (NYSE: FTK), Coherent (NASDAQ: COHR), and National CineMedia (NASDAQ: NCMI) were among the worst performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.
Shares of Flotek Industries plunged 34% in the wake of a poor second-quarter financial report. The chemical company with considerable exposure to the energy industry said that revenue gains were weaker than most had expected, and higher costs related to consumer and industrial technologies prevented Flotek from earning as much as investors had wanted to see. Falling crude oil prices have made times tough for companies across the energy sector, but even when oil seemed to be back on the upswing, Flotek in particular has had to deal with the failure of some of its most innovative products to get as much demand from customers as the company would like. Unless that happens soon, Flotek might well miss out even if the broader energy arena continues to rebound.
Image source: Flotek Industries.
Source: Fool.com
