The 10-second takeaway
For the quarter ended March 31 (Q1), Dril-Quip beat expectations on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded significantly.
Gross margins shrank, operating margins expanded, net margins expanded.
Dril-Quip reported revenue of $177.1 million. The six analysts polled by S&P Capital IQ predicted revenue of $164.4 million on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $137.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.71. The seven earnings estimates compiled by S&P Capital IQ predicted $0.67 per share. GAAP EPS of $0.71 for Q1 were 31% higher than the prior-year quarter's $0.54 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 39.6%, 220 basis points worse than the prior-year quarter. Operating margin was 22.6%, 40 basis points better than the prior-year quarter. Net margin was 16.3%, 60 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $169.3 million. On the bottom line, the average EPS estimate is $0.70.
Next year's average estimate for revenue is $692.1 million. The average EPS estimate is $3.00.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 347 members out of 370 rating the stock outperform, and 23 members rating it underperform. Among 108 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 104 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 $72.70.
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Seth Jayson owned shares of Dril-Quip at the time of publication. You can view his stock holdings. He is the 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 don't 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.