Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Dril-Quip Not So Cheap And Market Positioning Is A Question

This has been a weird stretch for energy equipment companies like Cameron (NYSE:CAM), FMC Technologies (NYSE:FTI), and Dril-Quip (NYSE:DRQ) as investors reconcile the long-term offshore opportunities with short-term order volatility and periodic questions about the companies' ability to profitably manufacture and deliver those orders. Dril-Quip has proven itself over the long term as a high-quality operator, but I do have some concerns about whether the company is well-positioned for the short term. Combined with a valuation that doesn't strike me as particularly cheap, I can't work up a lot of enthusiasm for this stock.

A Revenue-Driven Miss

Dril-Quip came in 15% light on revenue in the first quarter, as revenue rose 6% yoy and...

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