Dril-Quip Q1 Profit Increases, But Lowers View For Full-Year Earnings

(RTTNews) - Dril-Quip, Inc. (DRQ), a manufacturer of offshore drilling and production equipment, Friday reported a rise in earnings as well as revenues for the first quarter. The company, however, lowered its earnings outlook for 2014.

For the three months to March, net earnings increased to $42.62 million or $1.04 per share, from $39.84 million or $0.98 per share a year earlier.

On average, 14 analysts polled by Thomson-Reuters estimated the company's earnings to be $1.20 for the quarter. Analysts' estimates typically exclude one-time items.

Revenues for the 3-month period grew to $204.07 million from $193.15 million a year ago.

During the quarter, the company was unable to recognize around $10 million in revenue related to items of equipment that were not accepted for delivery by a customer due to disagreement over certain contractual requirements.

Chiefly on account of these customer acceptance issues stated above, the company lowered its annual earnings guidance to $4.70 - $4.90 per share from the $5.00 - $5.20 projected earlier.

For the quarter ending June 30, Dril-Quip expects earnings of $1.05 to $1.15 per share.