NYSE$INVX

Innovex International Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported operational and financial results, showing increased revenue due to aftermarket activity, a net loss, and positive free cash flow.

Dril-Quip reported Q3 2021 results with increased revenue to $83.0 million driven by higher aftermarket activity in the Western Hemisphere. The company recorded a net loss of $11.1 million, or $0.31 per share, and an adjusted EBITDA of $4.0 million, or 4.8% of revenue. They generated net cash from operating activities of $9.3 million and free cash flow of $7.0 million, representing 8.5% of revenue.

  • Revenue increased to $83.0 million due to higher aftermarket activity in the Western Hemisphere.
  • Net loss was $11.1 million, or $0.31 per share, improving from the previous quarter.
  • Adjusted EBITDA was $4.0 million, or 4.8% of revenue, driven by improved aftermarket and downhole tools activity.
  • Net cash from operating activities was $9.3 million, and free cash flow was $7.0 million, or 8.5% of revenue.

Headline financials

Total Revenue

$83M

Previous: $91.3M-9.1%
EPS (adj)

-$0.35

Previous: $0.44-179.5%
Adjusted EBITDA

$4M

Previous: $10.2M-60.8%
Capital Expenditures

-$7.93M

Previous: -$10.2M+22.6%
Free Cash Flow

-$19.1M

Previous: $4.08M-567.1%
Net Income

-$11.1M

Previous: $14.3M-177.8%
Operating Income

-$6.94M

Previous: -$2.1M-229.7%
Gross Profit

$20.2M

Previous: $24.1M-16.3%
Cash & Equivalents

$375M

Previous: $359M+4.5%
Total Assets

$1.09B

Previous: $1.16B-5.7%
Stock-Based Comp

$3.28M

Previous: $3M+9.1%

Revenue & EPS history

Dril-Quip · Revenue · Quarterly

$83M

Q3 2021-9.1%vs Q3 2020
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Dril-Quip · $73.2M total across 2 segments · Q3 2021

  • Product Revenues
    $53.6M
  • Service Revenues
    $19.6M

Forward guidance

Dril-Quip anticipates Q4 bookings to be at the high end of their $40 to $60 million range and they expect that the larger integrated oil companies will begin to look at placing new orders in the back half of 2022 should commodity prices continue to remain at or near current levels.

Tailwinds

  • Indications of increased activity by independent exploration and production customers.
  • Customers are getting back to work and consuming their inventory.
  • Anticipated Q4 bookings at the high end of $40 to $60 million range.
  • Larger integrated oil companies may place new orders in the back half of 2022 if commodity prices remain stable.
  • Strategic growth pillars are setting the foundation to outperform the market in a recovery.

Headwinds

  • Product orders have not yet resumed to pre-pandemic levels.
  • Increased pressure on product revenue and margins due to customer and product mix.
  • Uncertainty of some customer plans as they formalize budget plans for 2022.
  • Market conditions require continuous monitoring and response.
  • Depressed levels of product orders over the past several quarters.

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 2021

Historical avgQ3 2021

-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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