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Offshore drilling and production equipment manufacturer Dril-Quip Inc. (DRQ - Free Report) reported first-quarter 2017 adjusted earnings of 5 cents per share that surpassed the Zacks Consensus Estimate of 3 cents on higher product bookings. The quarterly earnings, however, decreased significantly from 83 cents a year ago due to increased expenses.
The company registered total revenue of $119.2 million in the quarter compared with the year-ago level of $166.6 million. However, the top line beat the Zacks Consensus Estimate of $100 million.
The company’s operating loss of approximately $0.9 million compared unfavorably with an operating income of $49.3 million in the year-earlier quarter.
On the cost front, selling, general and administrative expenses rose from the year-earlier level of approximately $13.2 million to about $25.8 million. Engineering and product development costs were up 8.3% year over year. Dril-Quip’s total cost and expense during the quarter was $120.1 million compared with $117.2 million in the year-ago quarter.
Backlog
As of Mar 31, 2017, the company had a backlog of $296 million as against a backlog of roughly $522 million as of Mar 31, 2016.
Share Price Performance in Q1
Dril-Quip underperformed the Zacks categorized Oil Field Machinery & Equipment industry in the first quarter. During this period, the company’s shares lost 9.2% as against 0.4% decrease for the broader industry.
Zacks Rank
Dril-Quip carries a Zacks Rank #4 (Sell). Some better-ranked players from the energy sector include Antero Resources Corporation (AR - Free Report) , W&T Offshore Inc. (WTI - Free Report) and Diamond Offshore Drilling Inc. (DO - Free Report) . Antero Resources and Diamond Offshore sport a Zacks Rank #1 (Strong Buy), while W&T Offshore carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Antero Resources beat the Zacks Consensus Estimate in each of the trailing four quarters with an average positive surprise of 239.10%.
W&T Offshore had an average positive earnings surprise of 50.53% for the last four quarters.
Diamond Offshore surpassed the Zacks Consensus Estimate in all the prior four quarters with an average positive earnings surprise of 353.3%.
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Dril-Quip (DRQ) Q1 Earnings Beat Estimates, Decrease Y/Y
Offshore drilling and production equipment manufacturer Dril-Quip Inc. (DRQ - Free Report) reported first-quarter 2017 adjusted earnings of 5 cents per share that surpassed the Zacks Consensus Estimate of 3 cents on higher product bookings. The quarterly earnings, however, decreased significantly from 83 cents a year ago due to increased expenses.
The company registered total revenue of $119.2 million in the quarter compared with the year-ago level of $166.6 million. However, the top line beat the Zacks Consensus Estimate of $100 million.
The company’s operating loss of approximately $0.9 million compared unfavorably with an operating income of $49.3 million in the year-earlier quarter.
On the cost front, selling, general and administrative expenses rose from the year-earlier level of approximately $13.2 million to about $25.8 million. Engineering and product development costs were up 8.3% year over year. Dril-Quip’s total cost and expense during the quarter was $120.1 million compared with $117.2 million in the year-ago quarter.
Backlog
As of Mar 31, 2017, the company had a backlog of $296 million as against a backlog of roughly $522 million as of Mar 31, 2016.
Share Price Performance in Q1
Dril-Quip underperformed the Zacks categorized Oil Field Machinery & Equipment industry in the first quarter. During this period, the company’s shares lost 9.2% as against 0.4% decrease for the broader industry.
Zacks Rank
Dril-Quip carries a Zacks Rank #4 (Sell). Some better-ranked players from the energy sector include Antero Resources Corporation (AR - Free Report) , W&T Offshore Inc. (WTI - Free Report) and Diamond Offshore Drilling Inc. (DO - Free Report) . Antero Resources and Diamond Offshore sport a Zacks Rank #1 (Strong Buy), while W&T Offshore carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Antero Resources beat the Zacks Consensus Estimate in each of the trailing four quarters with an average positive surprise of 239.10%.
W&T Offshore had an average positive earnings surprise of 50.53% for the last four quarters.
Diamond Offshore surpassed the Zacks Consensus Estimate in all the prior four quarters with an average positive earnings surprise of 353.3%.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500. See today's Zacks "Strong Sells" absolutely free >>