UPDATE: Dril-Quip Posts Upbeat Q4 Results, But Issues Weak Earnings Forecast

reported stronger-than-expected results for the fourth quarter. However, the company issued a weak earnings forecast. The Houston, Texas-based company posted quarterly earnings of $59.1 million, or $1.50 per share, up from $47.1 million, or $1.15 per share, in the year-ago period. Excluding non-recurring items, the company's earnings came in at $1.43 per share. The latest quarter results included an after-tax foreign exchange gain of $0.07 per share. Its revenue climbed 9.6% to $254.8 million. However, analysts were estimating earnings of $1.34 per share on revenue of $248.1 million. Dril-Quip's board also announced a stock buyback of $100 million. Blake DeBerry, Dril-Quip's President and CEO, said, "Despite significant headwinds, we managed to deliver earnings per share results in line with our beginning of the year expectations and we were able to finish the year with a backlog of approximately $1.2 billion, the same as our year end 2013 backlog." "Along with our entire industry, we will face numerous challenges throughout 2015. Falling oil prices have led to declining capital expenditure budgets for our customers and to uncertainties related to our bookings and our book-and-ship business for the year. These factors, combined with customer requests for pricing discounts, are expected to have a negative impact on both our revenue and gross margins," DeBerry added. Dril-Quip shares fell 2.76% to close at $69.88 yesterday.