Dril-Quip Earnings Preview

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Dril-Quip (NYS: DRQ) didn't hit the Street's expectations last quarter, but investors hope that it will rebound this quarter. The company will unveil its latest earnings Friday. Dril-Quip designs, manufactures, sells, and services highly engineered offshore drilling and production equipment suited for use in deepwater, harsh environment, and severe service applications.

What analysts say:

What our community says:
CAPS All-Stars are solidly backing the stock with 98% awarding it an "outperform" rating. The community at large agrees with the All-Stars with 94.6% assigning it a rating of "outperform." Fools are keen on Dril-Quip, though the message boards have been quiet lately with only 93 posts in the past 30 days. Even with a robust four out of five stars, Dril-Quip's CAPS rating falls a little short of the community's upbeat outlook.

Management:
Dril-Quip's income has fallen year over year by an average of 6.9%. A year-over-year revenue decrease last quarter snaps a streak of three consecutive quarters of revenue increases.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q1

Q4

Q3

Q2

Gross Margin

41.8%

42.2%

43.3%

44.0%

Operating Margin

22.2%

19.1%

26.9%

27.7%

Net Margin

15.7%

14.7%

19.7%

19.7%

For all our Dril-Quip-specific analysis, including earnings and beyond, add Dril-Quip to My Watchlist.

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At the time this article was published

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