Dril-Quip Inc. (DRQ), the manufacturer of offshore drilling and production equipment, reported fourth-quarter 2014 adjusted earnings of $1.43 per share, beating the Zacks Consensus Estimate of $1.34. Quarterly earnings also increased from $1.21 reported a year ago.
The reported results were favorably impacted by an after-tax foreign exchange gain of $2.6 million, or 7 cents per diluted share, compared with an after-tax foreign exchange loss of $2.3 million, or 6 cents per diluted share, during the fourth quarter of 2013.
The company registered total revenue of $254.8 million in the quarter, up from the year-ago level of $232.5 million. Also, the reported figure was above the Zacks Consensus Estimate of $247.0 million.
Full-year 2014 earnings of $5.19 per share increased from the year-ago profit level of $4.16 a share. Also, the reported figure was above the Zacks Consensus Estimate of $5.04.
Total revenue in 2014 improved 6.7% on a year-over-year basis to approximately $931.0 million. Also, the reported figure was above the Zacks Consensus Estimate of $924.0 million.
Operating income grew 23.7% to approximately $78.2 million from the year-earlier level of almost $63.2 million.
On the cost front, selling, general and administrative expenses fell 13.9% to $22.5 million from the year-earlier level of $26.1 million, while engineering and product development costs increased 5.9%.
Backlog
As of Dec 31, 2014, the company had a backlog of $1.2 billion, flat year over year.
Guidance
For the first quarter of 2015, Dril-Quip expects earnings between $1.10 and $1.20 per diluted share, excluding any unusual or special charges. Additionally, based on current market conditions, the company expects full-year adjusted earnings per share of $4.60–$4.80.
Zacks Rank
Currently, Dril-Quip holds a Zacks Rank #3 (Hold). Some better-ranked stocks in the same sector include Valero Energy Partners L.P. (VLP), Golar Energy Partners LP (GMLP) and Hallador Energy Co. (HNRG). All these stocks sport a Zacks Rank #1 (Strong Buy).
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