The 10-second takeaway
For the quarter ended March 31 (Q1), Dril-Quip met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share grew significantly.
Margins increased across the board.
Dril-Quip reported revenue of $193.2 million. The 10 analysts polled by S&P Capital IQ predicted revenue of $194.6 million on the same basis. GAAP reported sales were 9.1% higher than the prior-year quarter's $177.1 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 $0.98. The 12 earnings estimates compiled by S&P Capital IQ averaged $0.80 per share. GAAP EPS of $0.98 for Q1 were 38% higher than the prior-year quarter's $0.71 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%, 20 basis points better than the prior-year quarter. Operating margin was 27.0%, 440 basis points better than the prior-year quarter. Net margin was 20.6%, 430 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $206.0 million. On the bottom line, the average EPS estimate is $0.87.
Next year's average estimate for revenue is $846.1 million. The average EPS estimate is $3.69.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 339 members out of 360 rating the stock outperform, and 21 members rating it underperform. Among 97 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 92 give Dril-Quip a green thumbs-up, and five 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 $89.45.
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