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Mar 31, 2021
Dril-Quip Q1 2021 Earnings Report
Dril-Quip's financial performance was impacted by restructuring charges, but showed signs of recovery with improved gross margins and positive free cash flow.
Key Takeaways
Dril-Quip reported revenue of $81.2 million and a net loss of $34.4 million, which included $25.0 million in restructuring and other charges. However, the company saw improvements in gross margins and generated positive free cash flow of $10.6 million. Bookings were strong at $56.6 million, and the company is optimistic about market recovery.
Revenue was $81.2 million for the first quarter of 2021.
Net loss was $34.4 million, or $0.97 loss per share, impacted by $25.0 million in charges.
Net cash from operating activities was $13.1 million and free cash flow was $10.6 million, or 13.0% of revenue.
New product orders totaled $56.6 million, increasing quarter-end backlog by $1 million to $197 million.
Forward Guidance
Dril-Quip anticipates further improvements in product bookings and service demand during 2021 as market conditions show signs of recovery and the impacts from the global pandemic abate.
Positive Outlook
- Market conditions are beginning to show signs of recovery.
- Impacts from the global pandemic are starting to abate.
- Oil and gas demand is strengthening.
- Focus on providing first class products and services to customers.
- Preserving a strong balance sheet and generating positive free cash flow.
Challenges Ahead
- Challenges with the timing and predictability of customer deliveries and installations.
- Winter storm in Texas presented difficulties for Houston operations.
- Legal expenses related to an ongoing matter.
- Restructuring of downhole tools business.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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