Dril-Quip Inc. (DRQ - Free Report) shares have gained 2.1% despite reporting lower-than-expected first-quarter 2022 results on Apr 28. The manufacturer of highly engineered drilling and production equipment expects a continuous improvement in the business scenario in the near future. The company’s strong balance sheet, with ample liquidity, has been appreciated by investors.
Dril-Quip reported a first-quarter 2022 adjusted loss per share of 29 cents, wider than the Zacks Consensus Estimate of a loss of 21 cents. However, the bottom line improved from the year-ago loss of 47 cents per share.
The company registered total quarterly revenues of $83 million, missing the Zacks Consensus Estimate of $90 million. The top line increased from the year-ago quarter’s $81 million.
The lower-than-expected results can be attributed to the higher cost of sales. The negatives were partially offset by an increase in product revenues as a result of higher subsea product volumes.
DrilQuip, Inc. Price, Consensus and EPS Surprise
Q1 Performance
Dril-Quip reported product bookings of $66.5 million for the quarter. At the first quarter-end, it had $220.9 million in the backlog.
The company reported a first-quarter operating loss of $5.6 million, narrower than a loss of $31.6 million in the prior-year period.
Total Costs and Expenses
On the cost front, the cost of sales increased to $64 million for the reported quarter from $56.8 million in the year-ago period. However, engineering and product development costs contracted to $3.7 million for the quarter from the year-ago figure of $4 million. SG&A costs declined to $22.4 million from $29.6 million a year ago.
Total costs and expenses for the quarter were $88.7 million compared with $112.8 million a year ago.
Free Cash Flow
In the first quarter, Dril-Quip generated a negative free cash flow of $13 million against a cash flow of $10.6 million a year ago.
Financials
Dril-Quip recorded $2.1 million in capital expenditure for the quarter versus the year-ago level of $2.5 million.
As of Mar 31, 2022, its cash balance was $338 million. The company’s balance sheet is free of debt load, which highlights a sound financial position.
Guidance
For 2022, Dril-Quip revised its expectation of product bookings upward to $60-$80 million from the prior projection of $40-$60 million.
The Zacks Rank #3 (Hold) company projects total capital expenditure of $15-$17 million for the year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Releases
BP plc (BP - Free Report) reported first-quarter 2022 adjusted earnings of $1.92 per American Depositary Share on a replacement-cost basis, excluding non-operating items. The bottom line beat the Zacks Consensus Estimate of earnings of $1.41 per share. The strong quarterly earnings were driven by higher realizations of commodity prices.
BP's net debt, including leases, was $36,129 million at the end of the first quarter versus $42,380 million in the prior-year quarter. BP announced plans to execute a $2.5-billion share buyback, which is expected to complete before reporting the second-quarter results.
Chevron Corporation (CVX - Free Report) reported first-quarter adjusted earnings per share of $3.36, missing the Zacks Consensus Estimate of $3.44 on weaker-than-expected performance from the downstream segment.
As of Mar 31, Chevron had $11.7 billion in cash and cash equivalents, and total debt of $29.3 billion, with a debt-to-total capitalization of 16.7%. Chevron paid out $2.7 billion in dividends and bought back $1.3 billion worth of its shares.
Oceaneering International (OII - Free Report) reported a first-quarter 2022 adjusted loss of 6 cents per share, narrower than the Zacks Consensus Estimate of a loss of 10 cents. The outperformance was largely due to strong results in certain segments.
The capital expenditure in the first quarter, including acquisitions, summed at $19.3 million. As of Mar 31, 2022, Oceaneering had cash and cash equivalents worth $438 million and long-term debt of $701.8 million. The total debt-to-total capital was 58.3%. OII anticipates results to improve in the second quarter on a consolidated basis, with quarterly EBITDA forecast between $50 and $70 million on higher revenues.
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Dril-Quip Inc. (DRQ - Free Report) shares have gained 2.1% despite reporting lower-than-expected first-quarter 2022 results on Apr 28. The manufacturer of highly engineered drilling and production equipment expects a continuous improvement in the business scenario in the near future. The company’s strong balance sheet, with ample liquidity, has been appreciated by investors.
Dril-Quip reported a first-quarter 2022 adjusted loss per share of 29 cents, wider than the Zacks Consensus Estimate of a loss of 21 cents. However, the bottom line improved from the year-ago loss of 47 cents per share.
The company registered total quarterly revenues of $83 million, missing the Zacks Consensus Estimate of $90 million. The top line increased from the year-ago quarter’s $81 million.
The lower-than-expected results can be attributed to the higher cost of sales. The negatives were partially offset by an increase in product revenues as a result of higher subsea product volumes.
DrilQuip, Inc. Price, Consensus and EPS Surprise
Q1 Performance
Dril-Quip reported product bookings of $66.5 million for the quarter. At the first quarter-end, it had $220.9 million in the backlog.
The company reported a first-quarter operating loss of $5.6 million, narrower than a loss of $31.6 million in the prior-year period.
Total Costs and Expenses
On the cost front, the cost of sales increased to $64 million for the reported quarter from $56.8 million in the year-ago period. However, engineering and product development costs contracted to $3.7 million for the quarter from the year-ago figure of $4 million. SG&A costs declined to $22.4 million from $29.6 million a year ago.
Total costs and expenses for the quarter were $88.7 million compared with $112.8 million a year ago.
Free Cash Flow
In the first quarter, Dril-Quip generated a negative free cash flow of $13 million against a cash flow of $10.6 million a year ago.
Financials
Dril-Quip recorded $2.1 million in capital expenditure for the quarter versus the year-ago level of $2.5 million.
As of Mar 31, 2022, its cash balance was $338 million. The company’s balance sheet is free of debt load, which highlights a sound financial position.
Guidance
For 2022, Dril-Quip revised its expectation of product bookings upward to $60-$80 million from the prior projection of $40-$60 million.
The Zacks Rank #3 (Hold) company projects total capital expenditure of $15-$17 million for the year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Releases
BP plc (BP - Free Report) reported first-quarter 2022 adjusted earnings of $1.92 per American Depositary Share on a replacement-cost basis, excluding non-operating items. The bottom line beat the Zacks Consensus Estimate of earnings of $1.41 per share. The strong quarterly earnings were driven by higher realizations of commodity prices.
BP's net debt, including leases, was $36,129 million at the end of the first quarter versus $42,380 million in the prior-year quarter. BP announced plans to execute a $2.5-billion share buyback, which is expected to complete before reporting the second-quarter results.
Chevron Corporation (CVX - Free Report) reported first-quarter adjusted earnings per share of $3.36, missing the Zacks Consensus Estimate of $3.44 on weaker-than-expected performance from the downstream segment.
As of Mar 31, Chevron had $11.7 billion in cash and cash equivalents, and total debt of $29.3 billion, with a debt-to-total capitalization of 16.7%. Chevron paid out $2.7 billion in dividends and bought back $1.3 billion worth of its shares.
Oceaneering International (OII - Free Report) reported a first-quarter 2022 adjusted loss of 6 cents per share, narrower than the Zacks Consensus Estimate of a loss of 10 cents. The outperformance was largely due to strong results in certain segments.
The capital expenditure in the first quarter, including acquisitions, summed at $19.3 million. As of Mar 31, 2022, Oceaneering had cash and cash equivalents worth $438 million and long-term debt of $701.8 million. The total debt-to-total capital was 58.3%. OII anticipates results to improve in the second quarter on a consolidated basis, with quarterly EBITDA forecast between $50 and $70 million on higher revenues.
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Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
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