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Dril-Quip's (DRQ) Q4 Earnings Miss Estimates on Higher Costs
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Dril-Quip, Inc. (DRQ - Free Report) reported fourth-quarter 2023 adjusted earnings of 4 cents per share, which missed the Zacks Consensus Estimate of 11 cents. The bottom line also declined from the year-ago quarter’s 6 cents.
The company’s total quarterly revenues of $126 million increased from the year-ago quarter’s figure of $97 million. The figure, however, missed the Zacks Consensus Estimate of $136 million.
Significant rise in total costs and expenses led to weak quarterly earnings.
Dril-Quip reported net bookings of $122.7 million for the quarter, up 25% year over year. At the end of the reported quarter, the company had $264 million in its backlog.
DRQ reported a fourth-quarter operating income of $4.6 million, indicating a turnaround from the prior-year period’s reported loss of $2.4 million.
Total Costs and Expenses
The cost of sales increased to $121.8 million from $99.2 million in the year-ago period. Engineering and product development costs also increased to almost $3 million from $2.7 million.
Total costs and expenses were $121.8 million compared with $99.2 million registered in the corresponding period of 2022.
Free Cash Flow
In the fourth quarter, Dril-Quip generated a free cash flow of $14.5 million against a negative free cash flow of $22.8 million a year ago.
Financials
Dril-Quip recorded $11.6 million in capital expenditure for the quarter.
As of Dec 31, 2023, the company’s cash balance was $191.4 million. Its balance sheet is free of debt load, highlighting a sound financial position.
Guidance
DRQ expects revenues this year to grow 15% to 20% year over year. The company, carrying a Zacks Rank #3 (Hold), anticipates Subsea product bookings in 2024 in the band of $200-$225 million.
Three giants from the energy space that earlier reported their quarterly figures are Exxon Mobil Corporation (XOM - Free Report) , BP plc (BP - Free Report) and Chevron Corporation (CVX - Free Report) .
ExxonMobilreported fourth-quarter 2023 earnings per share of $2.48 (excluding identified items), which beat the Zacks Consensus Estimate of $2.21. However, the bottom line declined from the year-ago level of $3.40.
Total quarterly revenues of $84.3 billion missed the Zacks Consensus Estimate of $91.8 billion and declined from the year-ago quarter’s figure of $95.4 billion.
Better-than-expected quarterly earnings primarily resulted from increased liquids production. The positives were partially offset by lower realizations of crude and natural gas prices. To view our detailed earnings blog: ExxonMobil (XOM - Free Report) Q4 Earnings Beat Estimates, Revenues Fall Y/Y.
BP reported fourth-quarter 2023 adjusted earnings of $1.07 per American Depositary Share on a replacement-cost basis, excluding non-operating items. The bottom line missed the Zacks Consensus Estimate of $1.09 and declined from $1.59 reported a year ago.
Total quarterly revenues of $52,586 million lagged the Zacks Consensus Estimate of $59,530 million and declined from $70,356 million reported in the year-ago quarter.
Chevronreported adjusted fourth-quarter earnings per share of $3.45, topping the Zacks Consensus Estimate of $3.29. The outperformance could be attributed to higher-than-expected U.S. production in the company’s key upstream segment. The unit’s domestic output of 1,598 thousand oil-equivalent barrels per day (MBOE/d) set a new quarterly record and beat the consensus mark of 1,462 MBOE/d.
However, the company’s bottom line fell from the year-ago adjusted profit of $4.09 due to weaker oil and natural gas realizations, plus a dip in U.S. refined product sales margins.
The company generated revenues of $47.2 billion. The sales figure missed the Zacks Consensus Estimate of $52.6 billion and decreased 16.5% year over year. To view our detailed earnings blog: Chevron (CVX - Free Report) Q4 Earnings Beat on Record U.S. Production.
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Dril-Quip's (DRQ) Q4 Earnings Miss Estimates on Higher Costs
Dril-Quip, Inc. (DRQ - Free Report) reported fourth-quarter 2023 adjusted earnings of 4 cents per share, which missed the Zacks Consensus Estimate of 11 cents. The bottom line also declined from the year-ago quarter’s 6 cents.
The company’s total quarterly revenues of $126 million increased from the year-ago quarter’s figure of $97 million. The figure, however, missed the Zacks Consensus Estimate of $136 million.
Significant rise in total costs and expenses led to weak quarterly earnings.
Dril-Quip, Inc. Price, Consensus and EPS Surprise
Dril-Quip, Inc. price-consensus-eps-surprise-chart | Dril-Quip, Inc. Quote
Q4 Performance
Dril-Quip reported net bookings of $122.7 million for the quarter, up 25% year over year. At the end of the reported quarter, the company had $264 million in its backlog.
DRQ reported a fourth-quarter operating income of $4.6 million, indicating a turnaround from the prior-year period’s reported loss of $2.4 million.
Total Costs and Expenses
The cost of sales increased to $121.8 million from $99.2 million in the year-ago period. Engineering and product development costs also increased to almost $3 million from $2.7 million.
Total costs and expenses were $121.8 million compared with $99.2 million registered in the corresponding period of 2022.
Free Cash Flow
In the fourth quarter, Dril-Quip generated a free cash flow of $14.5 million against a negative free cash flow of $22.8 million a year ago.
Financials
Dril-Quip recorded $11.6 million in capital expenditure for the quarter.
As of Dec 31, 2023, the company’s cash balance was $191.4 million. Its balance sheet is free of debt load, highlighting a sound financial position.
Guidance
DRQ expects revenues this year to grow 15% to 20% year over year. The company, carrying a Zacks Rank #3 (Hold), anticipates Subsea product bookings in 2024 in the band of $200-$225 million.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Important Energy Earnings
Three giants from the energy space that earlier reported their quarterly figures are Exxon Mobil Corporation (XOM - Free Report) , BP plc (BP - Free Report) and Chevron Corporation (CVX - Free Report) .
ExxonMobilreported fourth-quarter 2023 earnings per share of $2.48 (excluding identified items), which beat the Zacks Consensus Estimate of $2.21. However, the bottom line declined from the year-ago level of $3.40.
Total quarterly revenues of $84.3 billion missed the Zacks Consensus Estimate of $91.8 billion and declined from the year-ago quarter’s figure of $95.4 billion.
Better-than-expected quarterly earnings primarily resulted from increased liquids production. The positives were partially offset by lower realizations of crude and natural gas prices. To view our detailed earnings blog: ExxonMobil (XOM - Free Report) Q4 Earnings Beat Estimates, Revenues Fall Y/Y.
BP reported fourth-quarter 2023 adjusted earnings of $1.07 per American Depositary Share on a replacement-cost basis, excluding non-operating items. The bottom line missed the Zacks Consensus Estimate of $1.09 and declined from $1.59 reported a year ago.
Total quarterly revenues of $52,586 million lagged the Zacks Consensus Estimate of $59,530 million and declined from $70,356 million reported in the year-ago quarter.
Lower realizations of commodity prices led to weak quarterly results. To view our detailed earnings blog: BP Misses Q4 Earnings Estimates, Expects 2024 Production Hike.
Chevronreported adjusted fourth-quarter earnings per share of $3.45, topping the Zacks Consensus Estimate of $3.29. The outperformance could be attributed to higher-than-expected U.S. production in the company’s key upstream segment. The unit’s domestic output of 1,598 thousand oil-equivalent barrels per day (MBOE/d) set a new quarterly record and beat the consensus mark of 1,462 MBOE/d.
However, the company’s bottom line fell from the year-ago adjusted profit of $4.09 due to weaker oil and natural gas realizations, plus a dip in U.S. refined product sales margins.
The company generated revenues of $47.2 billion. The sales figure missed the Zacks Consensus Estimate of $52.6 billion and decreased 16.5% year over year. To view our detailed earnings blog: Chevron (CVX - Free Report) Q4 Earnings Beat on Record U.S. Production.