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Dec 31, 2019
Dril-Quip Q4 2019 Earnings Report
Reported operational and financial results, showing revenue growth, increased product bookings, and net income.
Key Takeaways
Dril-Quip reported a positive fourth quarter with revenue at $108.5 million and product bookings at $101 million. Net income was $7.4 million, or $0.21 per diluted share. The company generated $8.1 million in net cash from operating activities and $5.2 million in free cash flow. Adjusted EBITDA grew to $15.8 million. Cost saving initiatives captured additional annualized savings of approximately $8 million. The company maintained a clean balance sheet with no debt and cash on hand of $399 million.
Revenue growth continued with Q4 2019 revenue of $108.5 million.
Product bookings increased to $101 million in Q4 2019.
Net income was reported at $7.4 million, or $0.21 per diluted share, in Q4 2019.
Adjusted EBITDA grew to $15.8 million in Q4 2019.
Forward Guidance
Dril-Quip expects growth to continue into 2020, but is not providing full year guidance due to uncertainty related to the Coronavirus. Q1 2020 revenue is forecasted to be between $95 million and $105 million, while product bookings are expected to range between $85 million and $105 million.
Positive Outlook
- Well-positioned operationally to support increasing order activity.
- More efficient overall cost structure.
- Improving margins.
- Strong momentum entering 2020.
- Belief that growth would continue.
Challenges Ahead
- Currently not giving full year guidance for revenues or bookings.
- Better line of sight on global demand is needed.
- Developing impact of the Coronavirus.
- Temporary disruptions in Singapore operations due to travel restrictions and quarantine.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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