NYSE$INVX

Innovex International Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported strong revenue growth driven by the Great North acquisition and key customer deliveries, along with substantial free cash flow improvement.

Dril-Quip reported a 31% sequential increase in revenue, driven by the acquisition of Great North and key deliveries to customers. Free cash flow was the highest since 2017, benefiting from improved working capital and a U.S. tax refund. However, capacity constraints in the offshore rig market are introducing headwinds.

  • Revenue increased 31% sequentially and 33% year-over-year to $117.2 million.
  • Net Loss decreased to $7.0 million, a $10.5 million decrease sequentially.
  • Cash provided by operations was $26.8 million, an increase of $25.8 million year-over-year.
  • Free cash flow was $21.4 million, the highest since 2017.

Headline financials

Total Revenue

$117M

Previous: $88.1M+33.0%
EPS (adj)

-$0.15

Previous: $0.05-400.0%
Adjusted EBITDA

$12.4M

Previous: $7.05M+76.0%
Capital Expenditures

-$21M

Previous: -$13.7M-53.4%
Free Cash Flow

-$28.1M

Previous: $1.5M-1974.2%
Net Income

-$7.03M

Previous: $15.2M-146.2%
Operating Income

-$6.07M

Previous: $14.4M-142.3%
Gross Profit

$31.6M

Previous: $22.4M+41.1%
Cash & Equivalents

$181M

Previous: $290M-37.6%
Total Assets

$1.01B

Previous: $971M+3.8%
R&D Expense

$3.06M

No prior period
Stock-Based Comp

$2.58M

Previous: $2.57M+0.3%

Revenue & EPS history

Dril-Quip · Revenue · Quarterly

$117M

Q3 2023+33%vs Q3 2022
Beat estimate in 12 of 13 quarters(92%)
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

Capacity constraints in the offshore rig market are introducing headwinds. Multiple customers have delayed product orders and service deliveries due to rig availability delaying drilling schedules, with latest estimates pushing some activity to spring of 2024. Our view that we are in the early innings of a multi-year offshore upcycle and that Dril-Quip’s portfolio is well-positioned for growth remains unchanged.

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 2023

Historical avgQ3 2023

-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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