Dril-Quip Inc. Stock Downgraded (DRQ)
- The revenue growth came in higher than the industry average of 14.3%. Since the same quarter one year prior, revenues rose by 28.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- DRQ has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.14, which clearly demonstrates the ability to cover short-term cash needs.
- DRIL-QUIP INC has improved earnings per share by 31.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, DRIL-QUIP INC reported lower earnings of $2.37 versus $2.55 in the prior year. This year, the market expects an improvement in earnings ($2.90 versus $2.37).
- DRQ has underperformed the S&P 500 Index, declining 10.92% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Energy Equipment & Services industry and the overall market, DRIL-QUIP INC's return on equity is below that of both the industry average and the S&P 500.
-- Written by a member of TheStreet Ratings Staff
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