Offshore drilling and production equipment manufacturer, Dril-Quip Inc. (NYSE:DRQ) reported third-quarter 2016 adjusted earnings of 39 cents per share that beat the Zacks Consensus Estimate by a penny. Lower total expenses led to the outperformance. However, quarterly earnings decreased from $1.19 a year ago due to reduced gross margin.
The company registered total revenue of $124 million in the quarter as against the year-ago level of $201.4 million. The reported figure, however, came above the Zacks Consensus Estimate of $121 million.
Operating income of approximately $22.9 million decreased substantially from the year-earlier level of almost $64.3 million.
On the cost front, selling, general and administrative expenses fell from the year-earlier level of approximately $17.3 million to about $12.5 million. Engineering and product development costs were down 10.3% year over year. Dril-Quip’s total cost and expenses during the quarter came in at $100.7 million compared with $137.2 million in the year-ago quarter.
Backlog
As of Sep 30, 2016, the company had a backlog of $378 million compared with a backlog of approximately $460 million as of Jun 30, 2016 .
Outlook
For 2016, the company projects earnings per diluted share in the range of $2.10–$2.20.
DRIL-QUIP INC Price, Consensus and EPS Surprise
DRIL-QUIP INC Price, Consensus and EPS Surprise | DRIL-QUIP INC Quote
Zacks Rank
Dril-Quip currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy sector are Ultra Petroleum Corp. (OTC:UPLMQ) , EQT Midstream Partners, LP (NYSE:EQM) and Helix Energy Solutions Group, Inc. (NYSE:HLX) .
Ultra Petroleum is likely to witness year-over-year earnings growth of 351.6% for the current year. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
EQT Midstream is projected to witness year-over-year earnings growth of almost 12% for the current year. It carries a Zacks Rank #2 (Buy).
Helix Energy posted an average positive earnings surprise of 56.42% over the last four quarters. The company has a Zacks Rank #2.
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DRIL-QUIP INC (DRQ): Free Stock Analysis Report
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