Dril-Quip Inc.'s (DRQ) third-quarter earnings rose 10% absent
prior-year charges as the maker of offshore oil-and-gas drilling
and production equipment reported stronger revenue and backlog.
The company, which has reported growth in recent quarters owing
to stronger offshore-rig-equipment revenue, said its backlog as of
Sept. 30 rose to $625 million from $563 million a year earlier and
was up $87 million from the second quarter.
The results come as offshore drilling in the U.S. Gulf of Mexico
was halted for months in the wake of the Deepwater Horizon
explosion.
Dril-Quip reported a profit of $27.7 million, or 69 cents a
share, up from $25.1 million, or 63 cents a share, a year earlier,
which included $4.2 million in charges. Revenue increased to $140.1
million $138.2 million.
Analysts polled by Thomson Reuters most recently forecast
earnings of 69 cents a share on revenue of $140.9 million.
Gross margin edged down to 43.3% from 43.4%.
For the fourth quarter, the company expects earnings of 64 cents
to 74 cents a share. Analysts on average anticipated 70 cents.
Shares closed Wednesday at $69.84 and were inactive premarket.
The stock is up 24% this year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com