Dril-Quip Inc. (DRQ - Free Report) shares have declined 9% despite reporting better-than-expected second-quarter 2022 results on Jul 28. Investors are concerned about the manufacturer of highly engineered drilling and production equipment generating negative free cash flows, which reflect its operational weakness.
Dril-Quip reported a second-quarter 2022 adjusted loss per share of 10 cents, narrower than the Zacks Consensus Estimate of a loss of 12 cents. The bottom line improved from the year-ago loss of 53 cents per share.
The company registered total quarterly revenues of $94 million, beating the Zacks Consensus Estimate of $87 million. The top line also increased from the year-ago quarter’s $81 million.
The second-quarter results were supported by an increase in product revenues as a result of higher subsea product volumes.
Q2 Performance
Dril-Quip reported product bookings of $49.6 million for the quarter. At the second-quarter end, it had $208.6 million in the backlog.
The company reported a second-quarter operating loss of $3.9 million, narrower than a loss of $14.7 million in the prior-year period.
Total Costs and Expenses
On the cost front, the cost of sales increased to $69.7 million for the reported quarter from $61.5 million in the year-ago period. However, engineering and product development costs contracted to $2.7 million in the quarter from the year-ago figure of $3.7 million. Selling, general and administrative costs declined to $22.5 million from $29.6 million a year ago.
Total costs and expenses for the quarter were $97.8 million compared with $95.5 million a year ago.
Free Cash Flow
In the second quarter, Dril-Quip generated a negative free cash flow of $10.6 million against a cash flow of $8.2 million a year ago.
Financials
Dril-Quip recorded $1.4 million in capital expenditure for the quarter versus the year-ago level of $3.5 million.
As of Jun 30, 2022, the company’s cash balance was $320.8 million. Its balance sheet is free of debt load, which highlights a sound financial position.
Guidance
For 2022, Dril-Quip expects products bookings to increase 20% year over year. The company reiterated its capital expenditure guidance at $15-$17 million for the year.
The Zacks Rank #3 (Hold) company announced plans to reduce scope 1 and scope 2 greenhouse gas emissions by 50% by 2030.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Releases
Devon Energy Corp. (DVN - Free Report) reported second-quarter 2022 adjusted earnings of $2.59 per share, beating the Zacks Consensus Estimate of $2.38 by 8.8%. The outperformance resulted from the company’s oil-weighted production mix, as well as a recovery in commodity prices.
Devon Energy’s share-repurchase authorization is $2 billion, which is equivalent to 5% of the company’s market capitalization. The board of directors approved a 13% increase of the fixed quarterly dividend of DVN to 18 cents.
DCP Midstream LP’s reported second-quarter adjusted earnings of $1.77 per unit, beating the Zacks Consensus Estimate of $1.14. Strong quarterly earnings were primarily driven by increased NGL pipeline throughput.
DCP generated an excess free cash flow of $254 million in the reported quarter. At the end of the second quarter, the partnership reported long-term debt of $4,622 million. Cash and cash equivalents were $8 million. It had current debt of $505 million.
APA Corporation (APA - Free Report) reported second-quarter 2022 adjusted earnings of $2.37 per share, meeting the Zacks Consensus Estimate. Strong quarterly results were supported by the higher realization of commodity prices.
As promised, APA is using the excess cash from a supportive environment to reward investors with dividends and buybacks. The company bought back 7 million shares at $41.59 a piece in the second quarter. Since APA started the program last October, 52.3 million shares have been repurchased in total up to Jul 31 at an average price of $31.19. It also shelled out $43 million in dividend payouts.
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Dril-Quip Inc. (DRQ - Free Report) shares have declined 9% despite reporting better-than-expected second-quarter 2022 results on Jul 28. Investors are concerned about the manufacturer of highly engineered drilling and production equipment generating negative free cash flows, which reflect its operational weakness.
Dril-Quip reported a second-quarter 2022 adjusted loss per share of 10 cents, narrower than the Zacks Consensus Estimate of a loss of 12 cents. The bottom line improved from the year-ago loss of 53 cents per share.
The company registered total quarterly revenues of $94 million, beating the Zacks Consensus Estimate of $87 million. The top line also increased from the year-ago quarter’s $81 million.
The second-quarter results were supported by an increase in product revenues as a result of higher subsea product volumes.
Q2 Performance
Dril-Quip reported product bookings of $49.6 million for the quarter. At the second-quarter end, it had $208.6 million in the backlog.
The company reported a second-quarter operating loss of $3.9 million, narrower than a loss of $14.7 million in the prior-year period.
Total Costs and Expenses
On the cost front, the cost of sales increased to $69.7 million for the reported quarter from $61.5 million in the year-ago period. However, engineering and product development costs contracted to $2.7 million in the quarter from the year-ago figure of $3.7 million. Selling, general and administrative costs declined to $22.5 million from $29.6 million a year ago.
Total costs and expenses for the quarter were $97.8 million compared with $95.5 million a year ago.
Free Cash Flow
In the second quarter, Dril-Quip generated a negative free cash flow of $10.6 million against a cash flow of $8.2 million a year ago.
Financials
Dril-Quip recorded $1.4 million in capital expenditure for the quarter versus the year-ago level of $3.5 million.
As of Jun 30, 2022, the company’s cash balance was $320.8 million. Its balance sheet is free of debt load, which highlights a sound financial position.
Guidance
For 2022, Dril-Quip expects products bookings to increase 20% year over year. The company reiterated its capital expenditure guidance at $15-$17 million for the year.
The Zacks Rank #3 (Hold) company announced plans to reduce scope 1 and scope 2 greenhouse gas emissions by 50% by 2030.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Releases
Devon Energy Corp. (DVN - Free Report) reported second-quarter 2022 adjusted earnings of $2.59 per share, beating the Zacks Consensus Estimate of $2.38 by 8.8%. The outperformance resulted from the company’s oil-weighted production mix, as well as a recovery in commodity prices.
Devon Energy’s share-repurchase authorization is $2 billion, which is equivalent to 5% of the company’s market capitalization. The board of directors approved a 13% increase of the fixed quarterly dividend of DVN to 18 cents.
DCP Midstream LP’s reported second-quarter adjusted earnings of $1.77 per unit, beating the Zacks Consensus Estimate of $1.14. Strong quarterly earnings were primarily driven by increased NGL pipeline throughput.
DCP generated an excess free cash flow of $254 million in the reported quarter. At the end of the second quarter, the partnership reported long-term debt of $4,622 million. Cash and cash equivalents were $8 million. It had current debt of $505 million.
APA Corporation (APA - Free Report) reported second-quarter 2022 adjusted earnings of $2.37 per share, meeting the Zacks Consensus Estimate. Strong quarterly results were supported by the higher realization of commodity prices.
As promised, APA is using the excess cash from a supportive environment to reward investors with dividends and buybacks. The company bought back 7 million shares at $41.59 a piece in the second quarter. Since APA started the program last October, 52.3 million shares have been repurchased in total up to Jul 31 at an average price of $31.19. It also shelled out $43 million in dividend payouts.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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