Offshore drilling and production equipment manufacturer, Dril-Quip Inc. (DRQ - Free Report) reported fourth-quarter 2016 adjusted earnings of 23 cents per share that missed the Zacks Consensus Estimate of 27 cents. The quarterly earnings also decreased from $1.20 a year ago due to lower gross margin.
The company registered total revenue of $106.1 million in the quarter as against the year-ago level of $201.6 million. The reported figure also came in below the Zacks Consensus Estimate of $113.5 million.
The company’s operating loss of approximately $4.6 million compared unfavorably with an operating income of $60.3 million in the year-earlier quarter.
On the cost front, selling, general and administrative expenses rose from the year-earlier level of approximately $20.2 million to about $21.7 million. Engineering and product development costs were down 11.9% year over year. Dril-Quip’s total cost and expense during the quarter was $110.7 million compared with $141.3 million in the year-ago quarter.
Full-year 2016 earnings of $2.09 per share decreased from the year-ago profit level of $4.88 a share. Also, the reported figure came in below the Zacks Consensus Estimate of $2.13.
Total revenue in 2016 declined 36.2% year over year to approximately $538.7 million. Also, the reported figure lagged the Zacks Consensus Estimate of $547.4 million.
Backlog
As of Dec 31, 2016, the company had a backlog of $318 million compared with a backlog of approximately $685 million as of Dec 31, 2016.
Zacks Rank
Dril-Quip carries a Zacks Rank #2 (Buy). Some better-ranked players in the same space include Denbury Resources Inc. , Sunrun Inc. (RUN - Free Report) and Pioneer Natural Resources Company (PXD - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Denbury Resources posted a earnings surprise of 0.00% in the preceding quarter. It had an average positive earnings surprise of 212.50% in the four trailing quarters.
Sunrun posted a positive earnings surprise of 137.21% in the preceding quarter. It beat estimates in all the four trailing quarters with an average positive earnings surprise of 134.71%.
Pioneer Natural Resources posted a positive earnings surprise of 63.33% in the preceding quarter. It beat estimates in all the four trailing quarters with an average positive earnings surprise of 21.86%.
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Offshore drilling and production equipment manufacturer, Dril-Quip Inc. (DRQ - Free Report) reported fourth-quarter 2016 adjusted earnings of 23 cents per share that missed the Zacks Consensus Estimate of 27 cents. The quarterly earnings also decreased from $1.20 a year ago due to lower gross margin.
The company registered total revenue of $106.1 million in the quarter as against the year-ago level of $201.6 million. The reported figure also came in below the Zacks Consensus Estimate of $113.5 million.
The company’s operating loss of approximately $4.6 million compared unfavorably with an operating income of $60.3 million in the year-earlier quarter.
On the cost front, selling, general and administrative expenses rose from the year-earlier level of approximately $20.2 million to about $21.7 million. Engineering and product development costs were down 11.9% year over year. Dril-Quip’s total cost and expense during the quarter was $110.7 million compared with $141.3 million in the year-ago quarter.
Full-year 2016 earnings of $2.09 per share decreased from the year-ago profit level of $4.88 a share. Also, the reported figure came in below the Zacks Consensus Estimate of $2.13.
Total revenue in 2016 declined 36.2% year over year to approximately $538.7 million. Also, the reported figure lagged the Zacks Consensus Estimate of $547.4 million.
Backlog
As of Dec 31, 2016, the company had a backlog of $318 million compared with a backlog of approximately $685 million as of Dec 31, 2016.
Zacks Rank
Dril-Quip carries a Zacks Rank #2 (Buy). Some better-ranked players in the same space include Denbury Resources Inc. , Sunrun Inc. (RUN - Free Report) and Pioneer Natural Resources Company (PXD - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Denbury Resources posted a earnings surprise of 0.00% in the preceding quarter. It had an average positive earnings surprise of 212.50% in the four trailing quarters.
Sunrun posted a positive earnings surprise of 137.21% in the preceding quarter. It beat estimates in all the four trailing quarters with an average positive earnings surprise of 134.71%.
Pioneer Natural Resources posted a positive earnings surprise of 63.33% in the preceding quarter. It beat estimates in all the four trailing quarters with an average positive earnings surprise of 21.86%.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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