NYSE$INVX

Innovex International Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported a decrease in revenue due to foreign exchange impacts and supply chain delays, but net income increased due to the gain on sale of the Houston forge facility.

Dril-Quip reported revenue of $88.1 million, a decrease from the previous quarter. Net income was $15.2 million, or $0.45 earnings per share, an increase compared to the second quarter of 2022. The company closed on the sale of the Houston forge facility during the third quarter, driving a net gain on sale of $17.3 million.

  • Revenue was $88.1 million, down $5.8 million from the second quarter of 2022.
  • Net income was $15.2 million, or $0.45 earnings per share, an increase of $20.8 million compared to the second quarter of 2022.
  • Adjusted EBITDA was $7.0 million, or 8.0% of revenue, a decrease of $2.3 million from the second quarter of 2022.
  • Booked $75.0 million of gross new orders during the third quarter of 2022.

Headline financials

Total Revenue

$88.1M

Previous: $83M+6.2%
EPS (adj)

$0.05

Previous: -$0.35+114.3%
Adjusted EBITDA

$7.05M

Previous: $4M+76.2%
Capital Expenditures

-$13.7M

Previous: -$7.93M-73.0%
Free Cash Flow

$1.5M

Previous: -$19.1M+107.9%
Net Income

$15.2M

Previous: -$11.1M+236.5%
Operating Income

$14.4M

Previous: -$6.94M+306.9%
Gross Profit

$22.4M

Previous: $20.2M+11.2%
Cash & Equivalents

$290M

Previous: $375M-22.6%
Total Assets

$971M

Previous: $1.09B-11.3%
Stock-Based Comp

$2.57M

Previous: $3.28M-21.6%

Revenue & EPS history

Dril-Quip · Revenue · Quarterly

$88.1M

Q3 2022+6.2%vs Q3 2021
Beat estimate in 12 of 13 quarters(92%)
ActualEstimate

Revenue by segment

Dril-Quip · $79M total across 2 segments · Q3 2022

  • Product Revenues
    $58.5M+9.1%
  • Service Revenues
    $20.4M+4.5%

Forward guidance

The company expects full year bookings to grow 15% to 20% compared to 2021. Incremental adjusted EBITDA margins are expected to be in the 30% - 40% range for the full year 2022. Free cash flow margin target is revised to be break-even for the full year 2022.

Tailwinds

  • Full year bookings are expected to grow 15% to 20% compared to 2021
  • Incremental adjusted EBITDA margins are expected to be in the 30% - 40% range for the full year 2022.
  • Leading indicators such as tender volume and average quote value have recovered to pre-pandemic levels.
  • Strategic moves related to the organization, footprint, and investment in manufacturing this year will benefit the company in years to come.
  • Order trends will continue to accelerate into next year led by activity growth in markets such as Brazil, Middle East and the North Sea across all product and service lines.

Headwinds

  • Free cash flow margin target is revised to be break-even for the full year 2022 due to increased working capital investment in stocking programs to secure forging supplies.
  • Experienced foreign exchange rate headwinds in the period.
  • Supply chain delays in downhole tool business.
  • Negatively impacted by a large project cancellation in the period.
  • Two customer project cancellations in the second and third 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 2022

Historical avgQ3 2022

-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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