The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Dril-Quip beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share increased significantly.
Margins dropped across the board.
Dril-Quip chalked up revenue of $171.6 million. The seven analysts polled by S&P Capital IQ predicted revenue of $155.4 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $141.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.79. The nine earnings estimates compiled by S&P Capital IQ predicted $0.62 per share on the same basis. GAAP EPS of $0.69 for Q4 were 33% higher than the prior-year quarter's $0.52 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 39.8%, 240 basis points worse than the prior-year quarter. Operating margin was 24.2%, 110 basis points worse than the prior-year quarter. Net margin was 36.6%, 400 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $161.0 million. On the bottom line, the average EPS estimate is $0.69.
Next year's average estimate for revenue is $710.4 million. The average EPS estimate is $3.25.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 348 members out of 370 rating the stock outperform, and 22 members rating it underperform. Among 135 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 131 give Dril-Quip a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Dril-Quip is outperform, with an average price target of $73.27.
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Seth Jayson owned shares of the following at the time of publication: Dril-Quip. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.