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Why Is Dril-Quip (DRQ) Down 10.1% Since the Last Earnings Report?
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A month has gone by since the last earnings report for Dril-Quip, Inc. (DRQ - Free Report) . Shares have lost about 10.1% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock’s next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Dril-Quip Q4 Earnings and Revenues Miss Estimates – Feb 28, 2017
Dril-Quip Inc. reported fourth-quarter 2016 adjusted earnings of $0.23 per share that missed the Zacks Consensus Estimate of $0.27. The quarterly earnings also decreased from $1.20 a year ago.
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.
Underperformance of the major operating areas following challenging market conditions primarily led to the disappointment.
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.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one downward revision for the current quarter. While looking back an additional 30 days, we can see even more downward movement. There have been three downward revisions in the last two months. In the past month, the consensus estimate also shifted downward by 84.7% due to these changes.
At this time, Dril-Quip's stock has a subpar Growth Score of 'D', though it is lagging a lot on the momentum front with an 'F'. Charting a somewhat similar path, the stock was allocated a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate investors will probably be better served looking elsewhere.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. It's no surprise that the stock has a Zacks Rank #4 (Sell). We are expecting a below average return from the stock in the next few months.
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Why Is Dril-Quip (DRQ) Down 10.1% Since the Last Earnings Report?
A month has gone by since the last earnings report for Dril-Quip, Inc. (DRQ - Free Report) . Shares have lost about 10.1% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock’s next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Dril-Quip Q4 Earnings and Revenues Miss Estimates – Feb 28, 2017
Dril-Quip Inc. reported fourth-quarter 2016 adjusted earnings of $0.23 per share that missed the Zacks Consensus Estimate of $0.27. The quarterly earnings also decreased from $1.20 a year ago.
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.
Underperformance of the major operating areas following challenging market conditions primarily led to the disappointment.
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.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one downward revision for the current quarter. While looking back an additional 30 days, we can see even more downward movement. There have been three downward revisions in the last two months. In the past month, the consensus estimate also shifted downward by 84.7% due to these changes.
Dril-Quip, Inc. Price and Consensus
Dril-Quip, Inc. Price and Consensus | Dril-Quip, Inc. Quote
VGM Scores
At this time, Dril-Quip's stock has a subpar Growth Score of 'D', though it is lagging a lot on the momentum front with an 'F'. Charting a somewhat similar path, the stock was allocated a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate investors will probably be better served looking elsewhere.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. It's no surprise that the stock has a Zacks Rank #4 (Sell). We are expecting a below average return from the stock in the next few months.