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.
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.
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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