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Cactus, Inc. (WHD) Up 7.5% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Cactus, Inc. (WHD - Free Report) . Shares have added about 7.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Cactus, Inc. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Cactus, Inc. reported second-quarter 2023 adjusted earnings of 84 cents per share, which beat the Zacks Consensus Estimate of 69 cents. The bottom line also rose from the year-ago quarter’s level of 44 cents.
Total quarterly revenues of $306 million beat the Zacks Consensus Estimate of $303 million. The top line also improved from the year-ago quarter’s figure of $170 million.
Cactus’ strong quarterly results were aided by increased revenues from the Pressure Control segment as a result of increased customer drilling activities.
Business Segments
Cactus has re-evaluated and reported two business segments upon the closure of the FlexSteel acquisition. One of the units is Pressure Control, while the other is Spoolable Technologies.
Cactus generated revenues of $199.1 million from the Pressure Control segment, up from $170.2 million in the comparable period of 2022. The reported figure also came in higher than our estimate of $194.9 million.
Adjusted Segment EBITDA for the unit totaled $69.9 million, up from $55.5 million in the prior-year quarter. Our estimate for the same was pegged at $70 million. The segment was supported by increased customer drilling activities.
Spoolable Technologies' revenues amounted to $106.7 million, higher than our estimate of $105 million. Adjusted Segment EBITDA for the unit came in at $45.5 million, exceeding our estimate of $41.5 million.
Capex and Cash Flow
Cactus’ second-quarter 2023 capital expenditures and other amount totaled $23.7 million. Operating cash flow amounted to $168.5 million.
Balance Sheet
At the end of the second quarter, Cactus had cash and cash equivalents of $63.9 million. It had gross bank debt of $55.0 million.
Guidance
For 2023, Cactus expects its net capital expenditure in the band of $35-$45 million, based on lowered expectations for near-term growth spending.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 19.57% due to these changes.
VGM Scores
At this time, Cactus, Inc. has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Cactus, Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Cactus, Inc. is part of the Zacks Oil and Gas - Integrated - United States industry. Over the past month, Marathon Oil (MRO - Free Report) , a stock from the same industry, has gained 5.2%. The company reported its results for the quarter ended June 2023 more than a month ago.
Marathon Oil reported revenues of $1.51 billion in the last reported quarter, representing a year-over-year change of -34.3%. EPS of $0.48 for the same period compares with $1.32 a year ago.
Marathon Oil is expected to post earnings of $0.59 per share for the current quarter, representing a year-over-year change of -52.4%. Over the last 30 days, the Zacks Consensus Estimate has changed +4.7%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Marathon Oil. Also, the stock has a VGM Score of B.
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Cactus, Inc. (WHD) Up 7.5% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Cactus, Inc. (WHD - Free Report) . Shares have added about 7.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Cactus, Inc. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Cactus Q2 Earnings Beat Estimates, Revenues Rise Y/Y
Cactus, Inc. reported second-quarter 2023 adjusted earnings of 84 cents per share, which beat the Zacks Consensus Estimate of 69 cents. The bottom line also rose from the year-ago quarter’s level of 44 cents.
Total quarterly revenues of $306 million beat the Zacks Consensus Estimate of $303 million. The top line also improved from the year-ago quarter’s figure of $170 million.
Cactus’ strong quarterly results were aided by increased revenues from the Pressure Control segment as a result of increased customer drilling activities.
Business Segments
Cactus has re-evaluated and reported two business segments upon the closure of the FlexSteel acquisition. One of the units is Pressure Control, while the other is Spoolable Technologies.
Cactus generated revenues of $199.1 million from the Pressure Control segment, up from $170.2 million in the comparable period of 2022. The reported figure also came in higher than our estimate of $194.9 million.
Adjusted Segment EBITDA for the unit totaled $69.9 million, up from $55.5 million in the prior-year quarter. Our estimate for the same was pegged at $70 million. The segment was supported by increased customer drilling activities.
Spoolable Technologies' revenues amounted to $106.7 million, higher than our estimate of $105 million. Adjusted Segment EBITDA for the unit came in at $45.5 million, exceeding our estimate of $41.5 million.
Capex and Cash Flow
Cactus’ second-quarter 2023 capital expenditures and other amount totaled $23.7 million. Operating cash flow amounted to $168.5 million.
Balance Sheet
At the end of the second quarter, Cactus had cash and cash equivalents of $63.9 million. It had gross bank debt of $55.0 million.
Guidance
For 2023, Cactus expects its net capital expenditure in the band of $35-$45 million, based on lowered expectations for near-term growth spending.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 19.57% due to these changes.
VGM Scores
At this time, Cactus, Inc. has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Cactus, Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Cactus, Inc. is part of the Zacks Oil and Gas - Integrated - United States industry. Over the past month, Marathon Oil (MRO - Free Report) , a stock from the same industry, has gained 5.2%. The company reported its results for the quarter ended June 2023 more than a month ago.
Marathon Oil reported revenues of $1.51 billion in the last reported quarter, representing a year-over-year change of -34.3%. EPS of $0.48 for the same period compares with $1.32 a year ago.
Marathon Oil is expected to post earnings of $0.59 per share for the current quarter, representing a year-over-year change of -52.4%. Over the last 30 days, the Zacks Consensus Estimate has changed +4.7%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Marathon Oil. Also, the stock has a VGM Score of B.