Superior Drilling Products (SDPI) Tops Q1 EPS by 1c, Revenues Beat

May 12, 2021 8:11 AM EDT
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Superior Drilling Products (NYSE: SDPI) reported Q1 EPS of ($0.04), $0.01 better than the analyst estimate of ($0.05). Revenue for the quarter came in at $2.43 million versus the consensus estimate of $2.07 million.

  • First quarter revenue grew $0.9 million to $2.4 million over trailing fourth quarter as market steadily improves
  • U.S. market conditions strengthening and market share expanding driving revenue in North America up 74% over trailing quarter
  • Tool revenue grew 84% over the trailing quarter while Contract Services revenue was up 19%
  • Cost savings efforts and improved revenue resulted in positive cash generation from operations; ended quarter with $2.3 million of cash on hand
  • Restructured international team to build market opportunity while expanding relationships with major oil field service companies to deepen market reach

Troy Meier, Chairman and CEO, commented, “The pace of activity is encouraging as markets begin to recover. Demand for new Drill-N-Ream® well bore conditioning tools in North America continued through April as market conditions strengthen. We believe we are also continuing to gain market share in this depressed environment as more operators recognize both the production efficiencies gained and costs saved when using the DNR for their drilling operations. Drill bit refurbishment activity has increased as well during the quarter, with the growing number of drill rigs operating in the U.S.”

He added, “We are bringing back fabricators, advancing new drill bit development and we are making progress on broader marketing and servicing agreements with much larger entities that have the breadth to extend and deepen our market reach. While we are not expecting the market in the U.S. to return to pre-COVID levels, we believe that there is still plenty of room for improvement and more market penetration potential for the DNR. We have also restructured our international development team to improve returns on our investments in those markets while also advancing the agreements needed to gain market share.”

Mr. Meier concluded, “We are optimistic about the recovery supporting growth through 2021. More significantly, we are excited about the changes we are making in the organization and the relationships we are building that we expect to drive significant growth for the Company in the long-term.”

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

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