Dril-Quip's (DRQ) Q2 Earnings Rise on Well Construction

Core Insights - Dril-Quip Inc (DRQ) reported a second-quarter 2024 adjusted earnings of 10 cents per share, a significant improvement from a loss of 3 cents in the same quarter last year [1] - The company's total quarterly revenues reached $120.3 million, up from $89.6 million in the prior-year quarter, driven by strong performance in Subsea Products and Well Construction business activities [1] Q2 Performance - In the June quarter, Dril-Quip booked Subsea Products orders of $54.1 million, reflecting a sequential rise of 25% [2] - The company incurred an operating loss of $4.7 million in Q2 2024, compared to a profit of $3.6 million in the same quarter last year [2] - Gross margin improved to 30.8% in Q2 2024, up from 26.7% in the prior-year quarter [2] Total Costs and Expenses - The cost of sales increased to $83.2 million from $65.7 million in the year-ago period [3] - Total costs and expenses for the quarter were $125 million, compared to $86 million in the corresponding period of 2023 [3] Free Cash Flow - Dril-Quip generated a negative free cash flow of $15.5 million in Q2 2024, compared to a positive free cash flow of $1.1 million reported a year ago [4] Financials - The company recorded $6.2 million in capital expenditure for the quarter [5] - As of June 30, 2024, Dril-Quip's cash balance was $189.2 million, and the balance sheet is free of debt, indicating a sound financial position [5] Zacks Rank & Peer Releases - Dril-Quip currently holds a Zacks Rank 3 (Hold) [6] - Other leading energy companies that reported second-quarter earnings include BP plc, SLB, and Exxon Mobil Corporation, all of which exceeded the Zacks Consensus Estimate of earnings for the June quarter [6]