We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Dril-Quip (DRQ) Stock Gains 2.1% Despite Q1 Earnings Miss
Read MoreHide Full Article
Dril-Quip Inc. 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.
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.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Dril-Quip (DRQ) Stock Gains 2.1% Despite Q1 Earnings Miss
Dril-Quip Inc. 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
DrilQuip, Inc. price-consensus-eps-surprise-chart | DrilQuip, Inc. Quote
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.