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Dril-Quip (DRQ) Shares Gain 1.6% as Q3 Earnings Beat Estimates
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Dril-Quip Inc. (DRQ - Free Report) shares have gained 1.6% since it reported strong third-quarter 2022 earnings on Oct 27.
Dril-Quip reported third-quarter adjusted earnings of 5 cents per share, which beat the Zacks Consensus Estimate of a loss of 8 cents. The bottom line improved from the year-ago loss of 35 cents per share.
The company’s total quarterly revenues of $88 million missed the Zacks Consensus Estimate of $94 million. However, the top line increased from the year-ago quarter’s $83 million.
Strong quarterly earnings were supported by an increase in product revenues as a result of higher subsea product volumes.
Dril-Quip reported product bookings of $75 million for the quarter. At the third-quarter end, it had $211.8 million in the backlog.
The company reported a third-quarter operating income of $14.4 million, turning around from a loss of $6.9 million in the prior-year period.
Total Costs and Expenses
The cost of sales increased to $65.7 million for the reported quarter from $62.8 million in the year-ago period. However, engineering and product development costs contracted to $2.6 million in the quarter from the year-ago figure of $3.5 million. Selling, general and administrative costs declined to $22.4 million from $25.3 million a year ago.
Total costs and expenses for the quarter were $73.8 million compared with $90 million a year ago.
Free Cash Flow
In the third quarter, Dril-Quip generated a negative free cash flow of $9.2 million against a cash flow of $7 million a year ago.
Financials
Dril-Quip recorded $10,3 million in capital expenditure for the quarter versus the year-ago level of $2.3 million.
As of Sept 30, 2022, the company’s cash balance was $290.3 million. Its balance sheet is free of debt load, which highlights a sound financial position.
Guidance
For 2022, Dril-Quip expects product bookings to increase 15-20% year over year. The company reiterated its capital expenditure guidance at $15-$17 million for the year.
Zacks Rank & Key Picks
Dril-Quip currently carries a Zacks Rank #3 (Hold).
Equinor ASA (EQNR - Free Report) reported third-quarter adjusted earnings per share of $2.12, beating the Zacks Consensus Estimate of $1.78. The strong quarterly earnings were driven by higher commodity prices and production.
Equinor’s board increased its extraordinary cash dividend to 70 cents per share from 50 cents per share for the third of 2022. This reflects the firm’s strong commitment to returning capital to shareholders.
Phillips 66 (PSX - Free Report) reported third-quarter 2022 adjusted earnings per share of $6.46, comfortably beating the Zacks Consensus Estimate of $4.98. The strong quarterly earnings were driven by robust refining margins worldwide.
Phillips 66’s latest dividend increase to 97 cents per share represents its 11th annual dividend hike since the company’s inception in 2012. With the recent resumption of the stock repurchase program, the increment in the quarterly dividend represents Phillips 66’s strong focus on returning capital to stockholders.
W&T Offshore, Inc. (WTI - Free Report) reported third-quarter 2022 adjusted earnings (excluding one-time items) of 33 cents per share, beating the Zacks Consensus Estimate of 28 cents. Strong quarterly results were driven by higher production and the realization of commodity prices.
W&T Offshore is expected to see earnings growth of 747.8% for 2022. For 2022, WTI reduced its capital spending budget to $65-$75 million from the prior stated $70-$90 million.
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Dril-Quip (DRQ) Shares Gain 1.6% as Q3 Earnings Beat Estimates
Dril-Quip Inc. (DRQ - Free Report) shares have gained 1.6% since it reported strong third-quarter 2022 earnings on Oct 27.
Dril-Quip reported third-quarter adjusted earnings of 5 cents per share, which beat the Zacks Consensus Estimate of a loss of 8 cents. The bottom line improved from the year-ago loss of 35 cents per share.
The company’s total quarterly revenues of $88 million missed the Zacks Consensus Estimate of $94 million. However, the top line increased from the year-ago quarter’s $83 million.
Strong quarterly earnings were supported 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
Q3 Performance
Dril-Quip reported product bookings of $75 million for the quarter. At the third-quarter end, it had $211.8 million in the backlog.
The company reported a third-quarter operating income of $14.4 million, turning around from a loss of $6.9 million in the prior-year period.
Total Costs and Expenses
The cost of sales increased to $65.7 million for the reported quarter from $62.8 million in the year-ago period. However, engineering and product development costs contracted to $2.6 million in the quarter from the year-ago figure of $3.5 million. Selling, general and administrative costs declined to $22.4 million from $25.3 million a year ago.
Total costs and expenses for the quarter were $73.8 million compared with $90 million a year ago.
Free Cash Flow
In the third quarter, Dril-Quip generated a negative free cash flow of $9.2 million against a cash flow of $7 million a year ago.
Financials
Dril-Quip recorded $10,3 million in capital expenditure for the quarter versus the year-ago level of $2.3 million.
As of Sept 30, 2022, the company’s cash balance was $290.3 million. Its balance sheet is free of debt load, which highlights a sound financial position.
Guidance
For 2022, Dril-Quip expects product bookings to increase 15-20% year over year. The company reiterated its capital expenditure guidance at $15-$17 million for the year.
Zacks Rank & Key Picks
Dril-Quip currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Equinor ASA (EQNR - Free Report) reported third-quarter adjusted earnings per share of $2.12, beating the Zacks Consensus Estimate of $1.78. The strong quarterly earnings were driven by higher commodity prices and production.
Equinor’s board increased its extraordinary cash dividend to 70 cents per share from 50 cents per share for the third of 2022. This reflects the firm’s strong commitment to returning capital to shareholders.
Phillips 66 (PSX - Free Report) reported third-quarter 2022 adjusted earnings per share of $6.46, comfortably beating the Zacks Consensus Estimate of $4.98. The strong quarterly earnings were driven by robust refining margins worldwide.
Phillips 66’s latest dividend increase to 97 cents per share represents its 11th annual dividend hike since the company’s inception in 2012. With the recent resumption of the stock repurchase program, the increment in the quarterly dividend represents Phillips 66’s strong focus on returning capital to stockholders.
W&T Offshore, Inc. (WTI - Free Report) reported third-quarter 2022 adjusted earnings (excluding one-time items) of 33 cents per share, beating the Zacks Consensus Estimate of 28 cents. Strong quarterly results were driven by higher production and the realization of commodity prices.
W&T Offshore is expected to see earnings growth of 747.8% for 2022. For 2022, WTI reduced its capital spending budget to $65-$75 million from the prior stated $70-$90 million.