Dril-Quip Inc. DRQ, the manufacturer of offshore drilling and production equipment, reported first-quarter 2015 adjusted earnings of $1.26 per share, beating the Zacks Consensus Estimate of $1.18. Quarterly earnings also increased from $1.04 reported a year ago.
The reported results were favorably impacted by an after-tax foreign exchange gain of $4.8 million, or 12 cents per diluted share, as compared to an after-tax foreign exchange loss of approximately $0.7 million, or 2 cents per diluted share, during the first quarter of 2014.
The company registered total revenue of $226.0 million in the quarter, up from the year-ago level of $204.1 million. Also, the reported figure was in line with the Zacks Consensus Estimate.
Operating income grew 22.4% to approximately $71.7 million from the year-earlier level of almost $58.6 million.
On the cost front, selling, general and administrative expenses fell 29.1% to approximately $17.0 million from the year-earlier level of $23.9 million, while engineering and product development costs increased 13.3%.
Backlog
As of Mar 31, 2015, the company had a backlog of $1.1 billion compared with its Mar 31, 2014 backlog of approximately $1.3 billion and its Dec 31, 2014 backlog of approximately $1.2 billion.
Guidance
For the second quarter of 2015, Dril-Quip expects earnings between $1.15 and $1.25 per diluted share, excluding any unusual or special charges. Additionally, based on the current market conditions, the company expects full-year adjusted earnings per share of $4.60–$4.80.
Zacks Rank
Currently, Dril-Quip carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the same sector are Rhino Resource Partners LP RNO, CNOOC Ltd CEO and Hallador Energy Company HNRG. All these stocks sport a Zacks Rank #1 (Strong Buy).
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