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Offshore drilling and production equipment manufacturer, Dril-Quip Inc. 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 currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy sector are Ultra Petroleum Corp. , EQT Midstream Partners, LP and Helix Energy Solutions Group, Inc. (HLX - Free Report) .
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 (DRQ) Q3 Earnings Beat Estimates, Decrease Y/Y
Offshore drilling and production equipment manufacturer, Dril-Quip Inc. 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. , EQT Midstream Partners, LP and Helix Energy Solutions Group, Inc. (HLX - Free Report) .
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.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>