Drilling Tools International (NASDAQ:DTI) Issues Quarterly Earnings Results, Misses Estimates By $0.06 EPS

Key Points

• Drilling Tools International reported an earnings per share (EPS) of ($0.02) for the quarter, missing analysts' estimates by ($0.06).
• The company's stock price declined 4.0% to $1.92 following the earnings announcement.
• Drilling Tools International has initiated a $10 million share buyback program, allowing repurchase of up to 10.2% of its stock, indicating a belief that its shares are undervalued.

Drilling Tools International (NASDAQ:DTI - Get Free Report) issued its quarterly earnings results on Wednesday. The company reported ($0.02) EPS for the quarter, missing analysts' consensus estimates of $0.04 by ($0.06), Zacks reports. Drilling Tools International had a negative net margin of 2.81% and a positive return on equity of 4.30%. The business had revenue of $39.42 million during the quarter, compared to analysts' expectations of $40.14 million. Drilling Tools International updated its FY 2025 guidance to EPS.

Drilling Tools International Stock Down 3.5%

DTI stock traded down $0.07 during mid-day trading on Monday, hitting $1.93. 46,975 shares of the company were exchanged, compared to its average volume of 30,403. The firm has a fifty day simple moving average of $2.59 and a 200 day simple moving average of $2.58. The company has a market capitalization of $68.69 million, a PE ratio of -14.85, a price-to-earnings-growth ratio of 2.96 and a beta of -0.41. Drilling Tools International has a twelve month low of $1.43 and a twelve month high of $4.33. The company has a current ratio of 1.94, a quick ratio of 1.41 and a debt-to-equity ratio of 0.40.

Wall Street Analyst Weigh In

Separately, Wall Street Zen raised Drilling Tools International from a "sell" rating to a "hold" rating in a research report on Thursday, May 22nd.

Drilling Tools International declared that its Board of Directors has authorized a stock buyback program on Tuesday, May 13th that authorizes the company to buyback $10.00 million in shares. This buyback authorization authorizes the company to purchase up to 10.2% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's board of directors believes its shares are undervalued.

Institutional Investors Weigh In On Drilling Tools International

A hedge fund recently raised its stake in Drilling Tools International stock. Bridgeway Capital Management LLC boosted its position in Drilling Tools International Corp. (NASDAQ:DTI - Free Report) by 187.0% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 71,741 shares of the company's stock after buying an additional 46,741 shares during the quarter. Bridgeway Capital Management LLC owned approximately 0.20% of Drilling Tools International worth $204,000 at the end of the most recent quarter. 2.79% of the stock is currently owned by institutional investors.

Drilling Tools International Company Profile

Drilling Tools International Corporation provides oilfield equipment and services to oil and natural gas sectors in North America, Europe, and the Middle East. It offers downhole tool rentals, machining, and inspection services to support the global drilling and wellbore construction industry. The company also provides products are bottom hole assembly components, such as stabilizers, subs, non-magnetic and steel drill collars, hole openers, and roller reamers, as well as drill pipe and drill pipe accessories; ancillary equipment and handling tools to support its rental platform, including float valves, ring gauges, tool baskets, lift bail, lift subs, mud magnets, elevators, bracket and bail assemblies, slips, tongs, stabbing guides and safety clamps; and blowout preventers, and pressure control accessory equipment.