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Dril-Quip (DRQ) Q1 Earnings Beat on Key Market Contributions
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Dril-Quip, Inc. (DRQ - Free Report) reported a first-quarter adjusted loss of 1 cent per share, narrower than the Zacks Consensus Estimate of a loss of 2 cents. The bottom line improved from the year-ago loss of 29 cents per share.
The company’s total quarterly revenues of $91 million increased from the year-ago quarter’s $83 million.
Strong quarterly results were supported by improved performance of key offshore markets and some reemerging areas.
Q1 Performance
Dril-Quip reported net bookings of $53.5 million for the quarter. DRQ’s first-quarter backlog rose 6% year over year, thanks to the increase in product bookings following improvement in market conditions.
The company reported a first-quarter operating income of $3.2 million, improving from a loss of $5.6 million in the prior-year period.
Total Costs and Expenses
The cost of sales increased to $65.5 million in the reported quarter from almost $64 million in the year-ago period. However, engineering and product development costs contracted to $3.4 million from the year-ago figure of $3.7 million. Selling, general and administrative costs increased to $22.6 million from $22.4 million a year ago.
Total costs and expenses in the quarter were $87.7 million compared with $88.7 million a year ago.
Free Cash Flow
In the first quarter, Dril-Quip generated a negative free cash flow of $58.3 million compared with $13 million a year ago.
Financials
Dril-Quip recorded $5.4 million in capital expenditure for the quarter.
As of Mar 31, 2023, the company’s cash balance was $235.3 million. Its balance sheet is free of debt load, highlighting a sound financial position.
Guidance
For 2023, Dril-Quip expects product bookings to increase 10-20% year over year. DRQ revealed its capital expenditure guidance of $25-$30 million for the year, indicating an increase from the $18.9 million reported in 2022.
Murphy USA is a leading retailer of gasoline. MUSA has more than 1,700 stores and has witnessed upward earnings estimate revisions for 2023 earnings in the past seven days.
Sunoco, a distributor of motor fuel to approximately 10,000 convenience stores, has a stable business model. For this year, SUN has witnessed upward earnings estimate revisions in the past seven days.
Cactus has been aiding its clients in fast-tracking their well drilling and completion activities. The company has also been enabling lower operator emissions per barrel of production. Thus, there has been a significantly lower carbon intensity per well.
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Dril-Quip (DRQ) Q1 Earnings Beat on Key Market Contributions
Dril-Quip, Inc. (DRQ - Free Report) reported a first-quarter adjusted loss of 1 cent per share, narrower than the Zacks Consensus Estimate of a loss of 2 cents. The bottom line improved from the year-ago loss of 29 cents per share.
The company’s total quarterly revenues of $91 million increased from the year-ago quarter’s $83 million.
Strong quarterly results were supported by improved performance of key offshore markets and some reemerging areas.
Q1 Performance
Dril-Quip reported net bookings of $53.5 million for the quarter. DRQ’s first-quarter backlog rose 6% year over year, thanks to the increase in product bookings following improvement in market conditions.
The company reported a first-quarter operating income of $3.2 million, improving from a loss of $5.6 million in the prior-year period.
Total Costs and Expenses
The cost of sales increased to $65.5 million in the reported quarter from almost $64 million in the year-ago period. However, engineering and product development costs contracted to $3.4 million from the year-ago figure of $3.7 million. Selling, general and administrative costs increased to $22.6 million from $22.4 million a year ago.
Total costs and expenses in the quarter were $87.7 million compared with $88.7 million a year ago.
Free Cash Flow
In the first quarter, Dril-Quip generated a negative free cash flow of $58.3 million compared with $13 million a year ago.
Financials
Dril-Quip recorded $5.4 million in capital expenditure for the quarter.
As of Mar 31, 2023, the company’s cash balance was $235.3 million. Its balance sheet is free of debt load, highlighting a sound financial position.
Guidance
For 2023, Dril-Quip expects product bookings to increase 10-20% year over year. DRQ revealed its capital expenditure guidance of $25-$30 million for the year, indicating an increase from the $18.9 million reported in 2022.
Zacks Rank & Other Stocks to Consider
Currently, Dril-Quip carries a Zacks Rank #2 (Buy). Other prospective players in the energy space include Murphy USA Inc. (MUSA - Free Report) , Sunoco LP (SUN - Free Report) and Cactus, Inc. (WHD - Free Report) . While Murphy USA carries a Zacks Rank #2, Sunoco and Cactus sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Murphy USA is a leading retailer of gasoline. MUSA has more than 1,700 stores and has witnessed upward earnings estimate revisions for 2023 earnings in the past seven days.
Sunoco, a distributor of motor fuel to approximately 10,000 convenience stores, has a stable business model. For this year, SUN has witnessed upward earnings estimate revisions in the past seven days.
Cactus has been aiding its clients in fast-tracking their well drilling and completion activities. The company has also been enabling lower operator emissions per barrel of production. Thus, there has been a significantly lower carbon intensity per well.