We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cactus (WHD) Down 5.2% Since Q2 Earnings Miss Estimates
Read MoreHide Full Article
Cactus, Inc.’s (WHD - Free Report) shares have declined 5.2% since it reported weaker-than-expected earnings on Jul 28. Second-quarter 2021 adjusted earnings of 16 cents per share missed the Zacks Consensus Estimate of 18 cents. Nonetheless, the bottom line increased from 10 cents a year ago.
It recorded total revenues of $108.9 million, which beat the Zacks Consensus Estimate of $104 million and increased from the year-ago quarter’s $66.5 million.
The company’s weaker-than-expected earnings were caused by higher costs and expenses as well as equipment reactivation costs in the Rental unit. The negatives were partially offset by higher sales of wellhead and production-related equipment, backed by improved drilling activities in the United States.
The board agreed to boost quarterly cash dividend by 11% to 10 cents per share. In the second quarter alone, it paid $6.8 million through dividends.
Business Segments
From the Product business, the company generated revenues of $70.3 million, increasing from $40.9 million in the June quarter of 2020. Gross profit from the business unit was recorded at $22.2 million, up from the year-ago quarter’s $14.9 million. The segment was supported by higher U.S. drilling activity, which triggered sales of wellhead and production-related equipment. Also, production tree sales witnessed a jump in the quarter.
The company’s Rental revenues were recorded at $14.6 million, up from $11.5 million in the year-ago quarter. Gross income from the Rental unit, however, declined to $0.2 million from the year-ago profit of $0.8 million. The segment suffered as a result of higher equipment reactivation costs.
From the Field Service and Other business segment, it generated revenues of almost $23.9 million, up from $14.1 million in the year-ago quarter. Gross profit from the business unit was $6.2 million, up from the year-ago quarter’s $2.6 million. Higher client activities resulted in increased billable hours, thereby boosting the unit.
Expenses
The cost of product revenues was recorded at $48.1 million, which jumped from $26 million in the year-ago quarter. Also, cost of rental revenues was reported at $14.4 million, up from $10.7 million in the June quarter of 2020. The cost of field service and other revenues increased to $17.7 million from $11.5 million a year ago. As such, total expenses jumped to $91.6 million from the year-ago level of almost $57.7 million.
Capex and Cash Flow
The company’s second-quarter 2021 cash investment amount was recorded at $2.3 million. For the second quarter, operating cash flow came in at $27.5 million.
Balance Sheet
At second quarter-end, Cactus had cash and cash equivalents of $309.1 million, up sequentially from $291.9 million. It has no bank debt outstanding as of Jun 30, 2021.
Guidance
For 2021, the company reiterated capital spending in the band of $10-$15 million. In the third quarter, it expects to generate revenues from the Middle-East, wherein it is expanding the business.
The Zacks Consensus Estimate for Range Resources’ earnings for 2021 is pegged at $1.53 per share, indicating a massive improvement from the year-ago loss of 9 cents.
Hess’ profits for 2021 are expected to jump 177.1% year over year.
Summit Midstream’s bottom line has witnessed two upward estimate revisions and no downward movement in the past 30 days.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Cactus (WHD) Down 5.2% Since Q2 Earnings Miss Estimates
Cactus, Inc.’s (WHD - Free Report) shares have declined 5.2% since it reported weaker-than-expected earnings on Jul 28. Second-quarter 2021 adjusted earnings of 16 cents per share missed the Zacks Consensus Estimate of 18 cents. Nonetheless, the bottom line increased from 10 cents a year ago.
It recorded total revenues of $108.9 million, which beat the Zacks Consensus Estimate of $104 million and increased from the year-ago quarter’s $66.5 million.
The company’s weaker-than-expected earnings were caused by higher costs and expenses as well as equipment reactivation costs in the Rental unit. The negatives were partially offset by higher sales of wellhead and production-related equipment, backed by improved drilling activities in the United States.
Cactus, Inc. Price, Consensus and EPS Surprise
Cactus, Inc. price-consensus-eps-surprise-chart | Cactus, Inc. Quote
Dividend
The board agreed to boost quarterly cash dividend by 11% to 10 cents per share. In the second quarter alone, it paid $6.8 million through dividends.
Business Segments
From the Product business, the company generated revenues of $70.3 million, increasing from $40.9 million in the June quarter of 2020. Gross profit from the business unit was recorded at $22.2 million, up from the year-ago quarter’s $14.9 million. The segment was supported by higher U.S. drilling activity, which triggered sales of wellhead and production-related equipment. Also, production tree sales witnessed a jump in the quarter.
The company’s Rental revenues were recorded at $14.6 million, up from $11.5 million in the year-ago quarter. Gross income from the Rental unit, however, declined to $0.2 million from the year-ago profit of $0.8 million. The segment suffered as a result of higher equipment reactivation costs.
From the Field Service and Other business segment, it generated revenues of almost $23.9 million, up from $14.1 million in the year-ago quarter. Gross profit from the business unit was $6.2 million, up from the year-ago quarter’s $2.6 million. Higher client activities resulted in increased billable hours, thereby boosting the unit.
Expenses
The cost of product revenues was recorded at $48.1 million, which jumped from $26 million in the year-ago quarter. Also, cost of rental revenues was reported at $14.4 million, up from $10.7 million in the June quarter of 2020. The cost of field service and other revenues increased to $17.7 million from $11.5 million a year ago. As such, total expenses jumped to $91.6 million from the year-ago level of almost $57.7 million.
Capex and Cash Flow
The company’s second-quarter 2021 cash investment amount was recorded at $2.3 million. For the second quarter, operating cash flow came in at $27.5 million.
Balance Sheet
At second quarter-end, Cactus had cash and cash equivalents of $309.1 million, up sequentially from $291.9 million. It has no bank debt outstanding as of Jun 30, 2021.
Guidance
For 2021, the company reiterated capital spending in the band of $10-$15 million. In the third quarter, it expects to generate revenues from the Middle-East, wherein it is expanding the business.
Zacks Rank & Stocks to Consider
The company currently has a Zacks Rank #3 (Hold). Some better-ranked stocks from the energy space include Range Resources Corporation (RRC - Free Report) , Hess Corporation (HES - Free Report) and Summit Midstream Partners, LP (SMLP - Free Report) , each having a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Range Resources’ earnings for 2021 is pegged at $1.53 per share, indicating a massive improvement from the year-ago loss of 9 cents.
Hess’ profits for 2021 are expected to jump 177.1% year over year.
Summit Midstream’s bottom line has witnessed two upward estimate revisions and no downward movement in the past 30 days.