- Dril-Quip (DRQ -6.8%) sinks after Q4 earnings and revenues come in below expectations, and the company's year-end 2016 backlog is less than half the year-end 2015 total - $318M compared to $685M.
- DRQ cites revenue shortfalls in each of its major operating regions, as operators continued to defer spending amid difficult market conditions; results also were hurt by non-recurring items, including costs associated with the TIW acquisition and one-time inventory adjustments.
- DRQ says 2017 will be a challenging year for the company and for the entire offshore sector, and that it has further cut employee headcount during Q1 and began pay reductions.
- Citing reduced backlog and uncertainty of book-and-ship order volumes, DRQ is not providing 2017 earnings guidance but expects Q1 to be its most challenging quarter of the year.