Dril-Quip Upgraded to Buy - Analyst Blog
20 Juin 2013 - 8:00PM
Zacks
On Jun 18, Zacks Investment
Research upgraded offshore drilling equipment maker,
Dril-Quip Inc. (DRQ) to a Zacks Rank #2
(Buy).
Why the Upgrade?
The operating environment and growth prospects seem bright for
Dril-Quip, as reflected by the rising earnings estimates for this
leading engineering company. Over the last 60 days, the Zacks
Consensus Estimate for the second quarter of 2013 has increased
2.3% to 88 cents per share, while that for 2013 rose 2.73% to $3.76
per share.
The momentum has been strong since Dril-Quip released its first
quarter earnings results on May 7. Earnings per share came in at 98
cents, exceeding the Zacks Consensus Estimate of 80 cents by 22.50%
and improving 30.66% from 75 cents a year ago. The outperformance
was mainly backed by growth in product and service revenues as
demand for offshore equipment increased.
With respect to the earnings trend, Dril-Quip delivered positive
earnings surprises in 3 of the last 4 quarters with an average beat
of 7.02%. The long-term expected earnings and sales growth
projections of 14.50% and 6.93%, respectively, are also fairly
impressive.
Additionally, Dril-Quip’s first quarter backlog witnessed a 16%
sequential as well as 45.8% year-over-year improvement. We also
expect large orders in 2013 from the Gulf of Mexico and Brazil,
with rising demand and activity level in these regions. This gives
it the financial flexibility to take advantage of growth
opportunities while returning capital to shareholders.
Other Stocks to Consider
There are certain other equipment makers in the energy sector that
are worth considering. These include Natural Gas Services
Group Inc. (NGS), Lufkin Industries Inc.
(LUFK) and Technip Ads (TKPPY). All these stocks
carry a Zacks Rank #2 (Buy).
DRIL-QUIP INC (DRQ): Free Stock Analysis Report
LUFKIN INDS (LUFK): Free Stock Analysis Report
NATURAL GAS SVC (NGS): Free Stock Analysis Report
TECHNIP NEW (TKPPY): Get Free Report
To read this article on Zacks.com click here.
Zacks Investment Research
Lufkin (NASDAQ:LUFK)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
Lufkin (NASDAQ:LUFK)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024
Real-Time news about Lufkin Industries, Inc. (MM) (NASDAQ): 0 recent articles
Plus d'articles sur Lufkin