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Dril-Quip (DRQ) Q1 Earnings Beat Estimates, Decrease Y/Y

Offshore drilling and production equipment manufacturer Dril-Quip Inc.DRQ reported first-quarter 2017 adjusted earnings of 5 cents per share that surpassed the Zacks Consensus Estimate of 3 cents on higher product bookings. The quarterly earnings, however, decreased significantly from 83 cents a year ago due to increased expenses.

The company registered total revenue of $119.2 million in the quarter compared with the year-ago level of $166.6 million. However, the top line beat the Zacks Consensus Estimate of $100 million.

The company's operating loss of approximately $0.9 million compared unfavorably with an operating income of $49.3 million in the year-earlier quarter.

On the cost front, selling, general and administrative expenses rose from the year-earlier level of approximately $13.2 million to about $25.8 million. Engineering and product development costs were up 8.3% year over year. Dril-Quip's total cost and expense during the quarter was $120.1 million compared with $117.2 million in the year-ago quarter.

Backlog

As of Mar 31, 2017, the company had a backlog of $296 million as against a backlog of roughly $522 million as of Mar 31, 2016.

Share Price Performance in Q1

Dril-Quip underperformed the Zacks categorized Oil Field Machinery & Equipment industry in the first quarter. During this period, the company's shares lost 9.2% as against 0.4% decrease for the broader industry.

Zacks Rank

Dril-Quip carries a Zacks Rank #4 (Sell). Some better-ranked players from the energy sector include Antero Resources Corporation AR , W&T Offshore Inc. WTI and Diamond Offshore Drilling Inc. DO . Antero Resources and Diamond Offshore sport a Zacks Rank #1 (Strong Buy), while W&T Offshore carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Antero Resources beat the Zacks Consensus Estimate in each of the trailing four quarters with an average positive surprise of 239.10%.

W&T Offshore had an average positive earnings surprise of 50.53% for the last four quarters.

Diamond Offshore surpassed the Zacks Consensus Estimate in all the prior four quarters with an average positive earnings surprise of 353.3%.

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Dril-Quip, Inc. (DRQ): Free Stock Analysis Report

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Antero Resources Corporation (AR): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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