NYSE$INVX

Innovex International Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported operational and financial results, with revenue down sequentially due to lower subsea product volumes and downhole tool product revenues. A net loss was reported, attributed primarily to restructuring and other charges.

Dril-Quip reported Q4 2021 revenue of $77.9 million and a net loss of $63.4 million, or $1.81 per share. The company's results were impacted by restructuring charges and other factors. However, new orders were strong at $79.8 million, and the company made progress on its strategic initiatives.

  • Delivered fourth quarter revenue of $77.9 million.
  • Reported net cash provided by operating activities of $4.7 million.
  • Free cash flow was $2.6 million, inclusive of $2.1 million of capital expenditures.
  • Booked $79.8 million in new orders.

Headline financials

Total Revenue

$77.9M

Previous: $87.2M-10.7%
EPS (adj)

-$0.46

Previous: -$0.12-283.3%
Capital Expenditures

$2.06M

Previous: $1.7M+21.3%
Free Cash Flow

$2.6M

Previous: -$18.5M+114.1%
Net Income

-$63.4M

Previous: -$11.3M-461.3%
Operating Income

-$71.7M

Previous: -$11.6M-516.2%
Gross Profit

$16.7M

Previous: $23.1M-27.6%
Cash & Equivalents

$356M

Previous: $346M+2.8%
Total Assets

$1.01B

Previous: $1.15B-12.2%
Stock-Based Comp

$5.35M

Previous: $3.45M+55.1%

Revenue & EPS history

Dril-Quip · Revenue · Quarterly

$77.9M

Q4 2021-10.7%vs Q4 2020
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Dril-Quip · $68.1M total across 2 segments · Q4 2021

  • Product Revenues
    $48.7M
  • Service Revenues
    $19.4M

Forward guidance

Dril-Quip anticipates an upward trend in orders during 2022, expecting a nearly 20% increase compared to the full year of 2021. Streamlining leadership and operations around focused business units is expected to enhance customer focus and expand operating margins. The company also plans to rationalize its footprint, potentially selling excess property to yield $40 million to $60 million.

Tailwinds

  • Expecting a nearly 20% increase in orders compared to the full year of 2021.
  • Streamlining leadership and operations around more focused and integrated business units.
  • Eliminating barriers will enhance our customer focus on delivering best-in-class products and services.
  • Expanding operating margins as we eliminate the waste that can often happen in functionally structured organizations.
  • Setting up a more disciplined and focused capital allocation strategy.

Headwinds

  • More footprint than required even when we look out to a full market recovery.
  • Early stages of an evaluation, but believe that once rationalized and leaned out around our new business model, we will be able to sell approximately 120 acres of that campus over the next few years.
  • Offset by an investment in our manufacturing equipment over the next two years.
  • Past due customer payments delayed until the first quarter of 2022.
  • There may still be ebbs and flows for product orders on a quarterly basis

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 Q4 2021

Historical avgQ4 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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