Dril-Quip Q1 Profit Down, Yet Tops View; Sees Sequentially Lower EPS In Q2

(RTTNews) - Dril-Quip Inc. (DRQ), a manufacturer of highly engineered offshore drilling and production equipment, reported Tuesday that its first-quarter net income declined to $36.77 million or $0.97 per share from $53.66 million or $1.38 per share last year.

On average, 14 analysts polled by Thomson Reuters expected earnings of $0.83 per share for the quarter. Analysts' estimates typically exclude special items.

The first quarter 2016 results were favorably impacted by an after-tax foreign exchange gain of $5.4 million, or $0.14 per share, as compared to foreign exchange gain of $4.8 million, or $0.12 per share last year.

Total revenues were $166.56 million, compared to $226.0 million for the same period in 2015. Analysts were looking for revenues of $167.39 million.

The company's backlog at March 31, 2016 was approximately $522 million, compared to backlog of approximately $1.1 billion last year.

Blake DeBerry, Dril-Quip's President and CEO, stated, "Continued weak and volatile oil prices, leading to declining capital expenditure budgets for our customers, resulted in disappointing booking levels during the period. Unfortunately, uncertainties persist regarding our bookings and our book-and-ship business for the remainder of the year."

Based upon current market conditions, the company expects its earnings per share for the second quarter to approximate $0.60 to $0.70 and for the full year to approximate $2.45 to $2.65, excluding foreign currency gains/losses or any unusual items.

Analysts expect earnings of $0.67 per share for the second quarter and $2.52 per share for the year.

Looking forward, the Company said it intends to continue its strategy of investing counter cyclically through the pursuit of attractive acquisition candidates, the repurchase of stock through stock buy-back program and research and development efforts to benefit the Company in the long term.