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Dril-Quip (DRQ) Down 5.9% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Dril-Quip (DRQ - Free Report) . Shares have lost about 5.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Dril-Quip 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 Q1 Loss Wider Than Expected, Revenues Miss
Dril-Quipreported 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.
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.
Cashflow
Dril-Quip’s free cash flow in the January-to-March period was $2.7 million.
Balance Sheet
As of Mar 31, 2019, cash balances rose to $414.8 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 100% due to these changes.
VGM Scores
Currently, Dril-Quip has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, 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 B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Dril-Quip has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Dril-Quip (DRQ) Down 5.9% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Dril-Quip (DRQ - Free Report) . Shares have lost about 5.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Dril-Quip 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 Q1 Loss Wider Than Expected, Revenues Miss
Dril-Quipreported 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.
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.
Cashflow
Dril-Quip’s free cash flow in the January-to-March period was $2.7 million.
Balance Sheet
As of Mar 31, 2019, cash balances rose to $414.8 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 100% due to these changes.
VGM Scores
Currently, Dril-Quip has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, 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 B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Dril-Quip has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.