Offshore drilling equipment maker,
) is slated to report fourth-quarter 2013 earnings on Mar 3,
DRIL-QUIP INC (DRQ): Free Stock Analysis
HELMERICH&PAYNE (HP): Free Stock Analysis
MATRIX SERVICE (MTRX): Free Stock Analysis
PATTERSON-UTI (PTEN): Free Stock Analysis
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In the last quarter, the company beat the Zacks Consensus
Estimate by a margin of 5.66%. Let's see how things are shaping
up for this announcement.
Factors to be Considered this Quarter
Dril-Quip manufactures highly engineered offshore drilling and
production equipment for deepwater severe-service applications
and harsh environmental conditions. The company designs and
manufactures subsea and surface wellheads, subsea and surface
production trees, mudline hanger systems, specialty connectors,
and associated pipe, drilling and production riser systems,
wellhead connectors and diverters, which are used on offshore rig
Dril-Quip's results are heavily levered with continued strength
in global deepwater drilling markets, especially in South America
and the Asia-Pacific region. Given the operators' long-term
outlook on these projects, deepwater drilling and other related
services will remain relatively stable through the usual
fluctuations in commodity prices.
In the subsea capital equipment area, Dril-Quip's competitive
position is fairly weak in the more lucrative large and complex
deepwater segment. Despite its strenuous efforts over the last
couple of years, it has made little headway in gaining market
share from larger competitors.
Our proven model does not conclusively show that Dril-Quip is
likely to beat the Zacks Consensus Estimate this quarter. This is
because a stock needs to have both a positive
(Expected Surprise Prediction) and a Zacks Rank #1, 2 or 3 for
this to happen. Unfortunately, this is not the case here as
Zacks ESP: This is because the Most Accurate estimate stands at a
loss of $1.10 while the Zacks Consensus Estimate is higher at
$1.13. This leads to an ESP of -2.66% for Dril-Quip.
Zacks Rank: Dril-Quip's Zacks Rank #3 (Hold) when combined with a
-2.66% ESP makes surprise prediction difficult.
We caution against stocks with Zacks Rank #4 and 5 (Sell-rated)
going into the earnings announcement, especially when the company
is seeing negative estimate revisions.
Other Stocks to Consider
Here are some companies in the oil & gas sector you may want
to consider as our model shows that they have the right
combination of elements.
Matrix Service Company
) has earnings ESP of +2.94% and carries a Zacks Rank #1 (Strong
Patterson-UTI Energy Inc.
) has earnings ESP of +3.45% and carries a Zacks Rank #1.
Helmerich & Payne Inc.
) has earnings ESP of +1.39% and carries a Zacks Rank #1.