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Dril-Quip (DRQ) Q1 Loss Wider Than Expected, Revenues Lag

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Dril-Quip, Inc.’s (DRQ - Free Report) reported first-quarter 2019 adjusted loss per share of 12 cents, wider than the Zacks Consensus Estimate of a loss of 6 cents. The company reported a loss of 24 cents in the year-ago quarter.
 

Dril-Quip, Inc. Price, Consensus and EPS Surprise

Dril-Quip, Inc. Price, Consensus and EPS Surprise | Dril-Quip, Inc. Quote

The company registered total revenues of $94 million in the quarter compared with $99 million in the year-ago quarter. Also, the figure missed the Zacks Consensus Estimate of $98 million.

Lower product revenues stemming from reduced activity levels caused the decline. Nevertheless, the downside was partially offset by lower expenses and cost-saving initiatives.

Cost and Expenses

On the cost front, selling, general and administrative expenses fell to around $24.5 million from the year-ago quarter's level of approximately $27.5 million. Engineering and product development costs declined 18.1% year over year to $3.6 million. Total cost and expenses during the quarter totaled $99.9 million compared with $105.4 million in the year-ago quarter.

Operating loss of $5.6 million was narrower than a loss of $6.3 million in the prior-year quarter.

Balance Sheet

As of Mar 31, 2019, cash balances rose to $414.8 million. Dril-Quip’s free cash flow in the January-to-March period was $2.7 million. Also, the balance sheet of the company is free from debt load, which indicates sound financial position. In fact, the company expects no headwinds to dent long-term growth plan.

Zacks Rank & Other Key Picks

Dril-Quip currently carries a Zacks Rank #2 (Buy).

Some other top-ranked players in the energy space are CrossAmerica Partners L.P. (CAPL - Free Report) , SEACOR Holdings, Inc (CKH - Free Report) and Murphy Oil Corporation (MUR - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

CrossAmerica Partners is involved in the wholesale distribution of motor fuels, comprising gasoline and diesel fuel. The partnership delivered average positive earnings surprise of 452.2% in the last four quarters.

SEACOR Holdings is a diversified holding company, mainly focused on domestic and international transportation, logistics as well as risk management consultancy. For 2019, the bottom line is expected to inch up 1.7% year over year. The company delivered average positive earnings surprise of 16.5% in the trailing four quarters.

Headquartered in Houston, TX, Murphy Oil is an independent oil and gas exploration company with producing properties. The top and the bottom line for 2019 is expected to inch up 2.1% and 12.7%, respectively, on a year-over-year basis. The company delivered average positive earnings surprise of 6% in the trailing four quarters.

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