Superior Drilling Products (SDPI) Reports Q1 Loss of $0.01, Revenues Beat; Affirms FY19 Revenues Guidance Above Consensus

Superior Drilling Products (NYSE: SDPI) reported Q1 EPS of ($0.01), versus $0.00 reported last year. Revenue for the quarter came in at $5.04 million versus the consensus estimate of $4.8 million.

• Revenue grew 9.5% over the prior year and 44.7% over the sequential quarter
• Cash generated from quarter operations nearly doubled to $1.0 million
• Making progress in Middle East market as runs with the Drill-N-Ream® increase

Troy Meier, Chairman and CEO, noted, “Our performance during the first quarter showed continued progress despite the challenges in the domestic oil and gas industry. Revenue growth in the quarter of 9.5% compared with the prior-year period was primarily due to improved contract terms with our legacy customer that resulted in greater volumes and higher prices being realized by Contract Services. In addition, the Middle East market’s adoption of our patented Drill-N-Ream (“DNR”) well bore conditioning tool is continuing to advance. While early in our international expansion efforts, we are excited by this market’s potential and the impact we expect it will have on 2019 results and beyond.”

He added, “We are furthering our relationships with our market channel partners in the Middle East as we build data validating the significant value proposition of the DNR. Similarly, the DNR continues to demonstrate its economic value in North America and in particular in the Permian Basin, where it has gained significant market share. Given industry conditions and efforts to grow market share, we are evaluating options to broaden our North American channels to market as well.”

GUIDANCE:

Superior Drilling Products sees FY2019 revenue of $21-23 million, versus the consensus of $20.54 million.

Mr. Meier concluded, “We are focused on the significant market opportunities for our DNR and Strider Technology™ oscillation system. We believe our success at developing tools that increase drilling efficiencies and improve well economics will continue to be a driver of growth this year and beyond. We have potential with continued expansion of our market share in the U.S., the measurable opportunity for international growth and the introduction of the Strider, which we expect to have rapid market acceptance.”

For earnings history and earnings-related data on Superior Drilling Products (SDPI) click here.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Blackhawk Network (HAWK) Reports Q2 Loss of $0.07; Offers Guidance
• CaliberCos Inc (CWD) Misses Q2 EPS by 43c; Offers Guidance