NYSE$INVX

Innovex International Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Dril-Quip's third quarter performance in 2020 reflected resilience amidst COVID-19 challenges, driven by improved product volumes and cost management.

Dril-Quip reported revenue of $91.3 million and net income of $14.3 million, or $0.41 per share, for the third quarter of 2020. The company increased adjusted EBITDA to $10.2 million and generated positive free cash flow.

  • Revenue reached $91.3 million, driven by increased product volumes in Asia Pacific and the U.S.
  • Net income was $14.3 million, or $0.41 per share, primarily due to federal income tax benefits.
  • Adjusted EBITDA increased to $10.2 million, representing 11.1% of revenue, from improved product margins and lower costs.
  • Net cash from operating activities was $13.9 million, increasing the cash position by $13.4 million to $359.2 million with no debt.

Headline financials

Total Revenue

$91.3M

Previous: $108M-15.6%
EPS (adj)

$0.44

Previous: -$0.07+728.6%
Adjusted EBITDA

$10.2M

No prior period
Capital Expenditures

-$10.2M

Previous: -$8.62M-18.8%
Free Cash Flow

$4.08M

Previous: -$9.93M+141.1%
Net Income

$14.3M

Previous: -$1.31M+1193.6%
Operating Income

-$2.1M

Previous: $222K-1047.7%
Gross Profit

$24.1M

Previous: $32.2M-25.2%
Cash & Equivalents

$359M

Previous: $413M-13.1%
Total Assets

$1.16B

Previous: $1.21B-3.8%
Stock-Based Comp

$3M

Previous: $7.66M-60.8%

Revenue & EPS history

Dril-Quip · Revenue · Quarterly

$91.3M

Q3 2020-15.6%vs Q3 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Dril-Quip · $105M total across 2 segments · Q3 2023

  • Product Revenues
    $77.6M+32.6%
  • Service Revenues
    $27.2M+33.1%

Forward guidance

The company expects challenges to persist into 2021 due to the global economy and commodity price instability, but remains in a strong financial position to capitalize on opportunities and explore strategic initiatives.

Tailwinds

  • Experienced management team navigating challenges.
  • Strong financial position to capitalize on opportunities.
  • Flexibility to evaluate potential acquisitions.
  • Actively exploring alternative approaches to monetize innovative technology.
  • Potential to expand customer base and participate in more operator projects.

Headwinds

  • Challenges expected to persist into 2021.
  • Global economy working to regain its footing.
  • Commodity prices beginning to stabilize.
  • Ongoing headwinds.
  • Demand destruction for oil and natural gas stemming from the global economic slowdown associated with the pandemic

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

-0.0%

Avg return

Earnings day

-0.4%

Avg return

5 days after

+0.1%

Avg return

30 days after

49%

33 / 68 earnings

Positive

+16.7%

Q4 2022

Best reaction

-19.2%

Q2 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.5%-2.8%+3.5%
Q4 2025+6.4%-3.0%-8.8%
Q3 2025-4.1%-1.9%+15.6%
Q1 2025+3.3%-0.3%+3.6%
Q4 2024+16.4%+10.5%+9.5%
Q3 2024-0.7%+4.1%-5.7%
Q2 2024-12.1%-13.3%-5.8%
Q1 2024+2.8%+4.6%+6.9%
Q4 2023+10.6%+8.8%+7.3%
Q3 2023-8.1%-12.6%-8.6%
Q2 2023+7.3%+9.8%+8.9%
Q1 2023-4.4%-11.0%-4.8%
Q4 2022+16.7%+21.9%-4.1%
Q3 2022-9.1%-8.0%-7.9%
Q2 2022+1.4%-6.8%-6.6%
Q1 2022-4.2%-0.8%+5.6%
Q4 2021+10.5%+16.2%+43.8%
Q3 2021+0.3%+1.9%-17.7%
Q2 2021-1.3%+2.4%-14.6%
Q1 2021+2.0%+7.1%+11.6%
Q4 2020-7.8%-9.0%-7.4%
Q3 2020+8.5%+7.5%+27.7%
Q2 2020-7.7%-2.5%-5.7%
Q1 2020-8.3%-5.0%+23.2%
Q4 2019+1.6%+5.0%-20.2%
Q3 2019-9.0%-8.3%-10.4%
Q2 2019+3.8%+4.7%-9.0%
Q1 2019-2.1%-2.0%-7.7%
Q4 2018+15.6%+13.0%+22.3%
Q3 2018+3.3%+3.4%-5.8%
Q2 2018-6.8%-7.9%-7.4%
Q1 2018-6.4%-5.2%+3.8%
Q4 2017-4.1%-6.0%-4.7%
Q3 2017+6.4%+10.3%+16.9%
Q2 2017+1.8%-13.0%-26.9%
Q1 2017+0.0%-5.0%-4.4%
Q4 2016-11.0%-14.2%-19.7%
Q3 2016-6.6%-8.4%+4.6%
Q2 2016-5.1%-1.1%+3.2%
Q1 2016+1.5%
Q4 2015+3.3%
Q3 2015-6.3%
Q2 2015-7.9%
Q1 2015+5.2%
Q4 2014+4.9%
Q3 2014-4.4%
Q2 2014-4.6%
Q1 2014-8.7%
Q4 2013+11.5%
Q3 2013-0.9%
Q2 2013+9.7%
Q1 2013+4.9%
Q4 2012-1.6%
Q3 2012+1.6%
Q2 2012-0.7%
Q1 2012-0.3%
Q4 2011-8.1%
Q3 2011+1.7%
Q2 2011-19.2%
Q1 2010+6.7%
Q1 2011-0.0%
Q4 2008-3.1%
Q4 2010-3.1%
Q3 2010+4.9%
Q3 2009+4.9%
Q2 2010+3.2%
Q4 2009+3.2%
Q2 2009+3.2%

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