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Cactus (WHD) Q3 Earnings Miss Estimates, Revenues Beat
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Cactus, Inc. (WHD - Free Report) reported third-quarter 2023 adjusted earnings of 80 cents per share, which missed the Zacks Consensus Estimate by a penny. The bottom line rose from the year-ago quarter’s 52 cents.
Total quarterly revenues of $287.9 million marginally beat the Zacks Consensus Estimate of $287 million. The top line also improved from the year-ago quarter’s $184.5 million.
Quarterly earnings resulted from declining revenues from both segments due to lower customer drilling activities.
Cactus has re-evaluated and reported two business segments upon the closure of the FlexSteel acquisition. One of the units is Pressure Control and the other is Spoolable Technologies.
Cactus generated revenues of $182.5 million from the Pressure Control segment, slightly down from $184.5 million in the comparable period of 2022. The reported figure beat our estimate of $179.2 million.
Adjusted Segment EBITDA for the unit totaled $59.4 million, down from $62.7 million in the prior-year quarter. The metric also lagged our estimate of $59.5 million. The segment was affected by lower customer drilling activities.
Spoolable Technologies’ revenues amounted to $105.4 million, lagging our estimate of $106.7 million. Adjusted Segment EBITDA for the unit came in at $43.7 million, exceeding our estimate of $42.8 million.
Capex and Cash Flow
Cactus’ third-quarter 2023 capital expenditure and other amount totaled $33.4 million. Operating cash flow amounted to $248.6 million.
Balance Sheet
At the end of the third quarter, Cactus had cash and cash equivalents of $63.7 million. The company had no gross bank debt outstanding as of Sep 30.
Outlook
In the fourth quarter, Cactus anticipates a stabilization of U.S. land activity levels, followed by a recovery in the first quarter of 2024. While the company foresees that Pressure Control margins may be affected by the reduced activity levels, it holds the belief that supply-chain initiatives will commence to influence inventory values in early 2024.
Oceaneering International, Inc. (OII - Free Report) reported third-quarter 2023 adjusted earnings of 38 cents per share, which beat the Zacks Consensus Estimate of 27 cents. OII’s outperformance was largely due to the robust results in certain segments.
For the fourth quarter of 2023, OII anticipates a decline in EBITDA on relatively flat revenues from that reported in the third quarter.
Matador Resources Company (MTDR - Free Report) reported third-quarter 2023 adjusted earnings of $1.86 per share, which beat the Zacks Consensus Estimate of $1.59. MTDR’s milestone led to better-than-expected third-quarter results, with the highest-ever total production averaging more than 135,000 barrels of oil-and-natural-gas-equivalent per day.
For the fourth quarter of 2023, Matador expects an average daily oil-equivalent production of 145,000 BOE. The recent guidance indicates a 2% upward revision from the prior mentioned 143,000 BOE/D.
Liberty Energy Inc. (LBRT - Free Report) reported third-quarter 2023 earnings of 85 cents per share, which beat the Zacks Consensus Estimate of 74 cents. The Denver, CO-based oil and gas equipment company’s outperformance reflects the impacts of strong execution and increased service pricing.
Liberty’s board of directors announced a cash dividend of 7 cents per common share, payable Dec 20, 2023, to stockholders of record as of Dec 6, 2023. The dividend increased 40% from the previous quarter’s level.
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Cactus (WHD) Q3 Earnings Miss Estimates, Revenues Beat
Cactus, Inc. (WHD - Free Report) reported third-quarter 2023 adjusted earnings of 80 cents per share, which missed the Zacks Consensus Estimate by a penny. The bottom line rose from the year-ago quarter’s 52 cents.
Total quarterly revenues of $287.9 million marginally beat the Zacks Consensus Estimate of $287 million. The top line also improved from the year-ago quarter’s $184.5 million.
Quarterly earnings resulted from declining revenues from both segments due to lower customer drilling activities.
Cactus, Inc. Price, Consensus and EPS Surprise
Cactus, Inc. price-consensus-eps-surprise-chart | Cactus, Inc. Quote
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 and the other is Spoolable Technologies.
Cactus generated revenues of $182.5 million from the Pressure Control segment, slightly down from $184.5 million in the comparable period of 2022. The reported figure beat our estimate of $179.2 million.
Adjusted Segment EBITDA for the unit totaled $59.4 million, down from $62.7 million in the prior-year quarter. The metric also lagged our estimate of $59.5 million. The segment was affected by lower customer drilling activities.
Spoolable Technologies’ revenues amounted to $105.4 million, lagging our estimate of $106.7 million. Adjusted Segment EBITDA for the unit came in at $43.7 million, exceeding our estimate of $42.8 million.
Capex and Cash Flow
Cactus’ third-quarter 2023 capital expenditure and other amount totaled $33.4 million. Operating cash flow amounted to $248.6 million.
Balance Sheet
At the end of the third quarter, Cactus had cash and cash equivalents of $63.7 million. The company had no gross bank debt outstanding as of Sep 30.
Outlook
In the fourth quarter, Cactus anticipates a stabilization of U.S. land activity levels, followed by a recovery in the first quarter of 2024. While the company foresees that Pressure Control margins may be affected by the reduced activity levels, it holds the belief that supply-chain initiatives will commence to influence inventory values in early 2024.
Zacks Rank & Stocks to Consider
Currently, Cactus carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Oceaneering International, Inc. (OII - Free Report) reported third-quarter 2023 adjusted earnings of 38 cents per share, which beat the Zacks Consensus Estimate of 27 cents. OII’s outperformance was largely due to the robust results in certain segments.
For the fourth quarter of 2023, OII anticipates a decline in EBITDA on relatively flat revenues from that reported in the third quarter.
Matador Resources Company (MTDR - Free Report) reported third-quarter 2023 adjusted earnings of $1.86 per share, which beat the Zacks Consensus Estimate of $1.59. MTDR’s milestone led to better-than-expected third-quarter results, with the highest-ever total production averaging more than 135,000 barrels of oil-and-natural-gas-equivalent per day.
For the fourth quarter of 2023, Matador expects an average daily oil-equivalent production of 145,000 BOE. The recent guidance indicates a 2% upward revision from the prior mentioned 143,000 BOE/D.
Liberty Energy Inc. (LBRT - Free Report) reported third-quarter 2023 earnings of 85 cents per share, which beat the Zacks Consensus Estimate of 74 cents. The Denver, CO-based oil and gas equipment company’s outperformance reflects the impacts of strong execution and increased service pricing.
Liberty’s board of directors announced a cash dividend of 7 cents per common share, payable Dec 20, 2023, to stockholders of record as of Dec 6, 2023. The dividend increased 40% from the previous quarter’s level.