Dril-Quip Inc. DRQ, the manufacturer of offshore drilling and production equipment, reported third-quarter 2015 adjusted earnings of $1.19 per share, beating the Zacks Consensus Estimate of $1.16. Quarterly earnings, however, decreased from $1.40 reported a year ago.
The reported results were favorably impacted by an after-tax foreign exchange gain of $5.1 million, or 13 cents per diluted share, compared with an after-tax foreign exchange gain of $3.1 million, or 8 cents per diluted share, in the third quarter of 2014.
The company registered total revenue of $201.4 million in the quarter, down from the year-ago level of $241.7 million. Also, the reported figure came in below the Zacks Consensus Estimate of $213.0 million.
Operating income of approximately $64.3 million was down almost 12.0% from the year-earlier level of almost $73.0 million.
On the cost front, selling, general and administrative expenses fell 17.1% from the year-earlier level of $20.8 million to approximately $17.3 million. Engineering and product development costs decreased 7.3% year over year.
Backlog
As of Sep 30, 2015, the company had a backlog of $824 million compared with its Jun 30, 2015 backlog of $974 million and its Sep 30, 2014 backlog of approximately $1.25 billion. The company's backlog balance during the three months ended Sep 30, 2015 was negatively impacted by purchase order cancellations and revisions totaling approximately $23 million. Backlog was also affected by currency translation adjustments of approximately $13 million due primarily to the strengthening of the U.S. dollar versus the Brazilian real.
Guidance
For the fourth quarter of 2015, Dril-Quip expects earnings between $1.00 and $1.10 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 $4.70–$4.80.
Zacks Rank
Currently, Dril-Quip carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the same space are Natural Gas Services Group Inc. NGS, Matrix Service Co. MTRX and Paragon Offshore plc PGN. Each of these stocks sports a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment