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Cactus (WHD) Q1 Earnings Beat on Spoolable Technologies
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Cactus, Inc. (WHD - Free Report) reported first-quarter 2024 adjusted earnings of 75 cents per share, which beat the Zacks Consensus Estimate of 67 cents. The bottom line also rose from the year-ago quarter’s level of 64 cents.
Total quarterly revenues of $274 million beat the Zacks Consensus Estimate of $268 million. The top line also improved from the year-ago quarter’s figure of $228 million.
The strong quarterly results can be attributed to contributions from the Spoolable Technologies segment.
Post-closure of the FlexSteel acquisition, Cactus reported under two business segments — Pressure Control and Spoolable Technologies.
WHD generated revenues of $175.03 million from the Pressure Control segment, down from $194.66 million reported in the year-ago quarter. The segment was adversely impacted by a decline in the sales of wellhead and production-related equipment due to lower customer activity. The top line was above our estimate of $171 million.
Adjusted Segment EBITDA for Pressure Control totaled $60.6 million, down from almost $72.8 million in the prior-year quarter. The reported figure was above our estimate of $56.7 million.
Revenues from the Spoolable Technologies segment came in at $99.1 million, up from $33.8 million in the prior-year quarter. The figure was also above our estimate of $96.3 million.
Adjusted Segment EBITDA for the unit totaled $38.8 million, up from $10.3 million in the prior-year quarter. The figure was also above our estimate of $36.3 million.
Capex and Cash Flow
Cactus’ capital expenditure and other amount for the quarter totaled $7.9 million. Operating cash flow amounted to $86.3 million.
Balance Sheet
Cactus had cash and cash equivalents of $194.3 million at the end of the first quarter of 2024. The company had no bank debt outstanding as of Mar 31, 2024.
Outlook
Cactus expects a sequential decline in U.S. land activity levels in the second quarter of 2024, driven by ongoing weakness in gas prices and global geopolitical uncertainties. However, in the Pressure Control sector, WHD anticipates revenues to remain relatively stable, mainly due to robust sales of production equipment in April. Additionally, Cactus expects a slight increase in revenues from Spoolable Technologies. It expects net capital expenditures to be in the range of $45-$55 million for full-year 2024.
SM Energy Company is an independent oil and gas company, engaged in the exploration, exploitation, development, acquisition, and production of oil and gas in North America. SM currently has a Value Score of B.
The Zacks Consensus Estimate for SM’s 2024 and 2025 EPS is pegged at $6.33 and $6.96, respectively. The company has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
EOG Resources, an oil and gas exploration company, boasts attractive growth prospects, top-tier returns, and a disciplined management team, leveraging highly productive acreages in prime oil shale plays like the Permian and Eagle Ford.
The Zacks Consensus Estimate for EOG’s 2024 EPS is pegged at $12.15. The company has a Zacks Style Score of B for Value and A for Momentum. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days.
PBF Energy operates with a diverse asset base of six refineries, boasting higher daily crude processing capacity and a complex refining system, enabling the production of superior-grade refined products.
The Zacks Consensus Estimate for PBF’s 2024 and 2025 EPS is pegged at $7.39 and $5.87, respectively. PBF currently has a Zacks Style Score of A for Value and A for Momentum. Over the past 30 days, PBF has witnessed upward earnings estimate revisions for 2024 and 2025.
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Cactus (WHD) Q1 Earnings Beat on Spoolable Technologies
Cactus, Inc. (WHD - Free Report) reported first-quarter 2024 adjusted earnings of 75 cents per share, which beat the Zacks Consensus Estimate of 67 cents. The bottom line also rose from the year-ago quarter’s level of 64 cents.
Total quarterly revenues of $274 million beat the Zacks Consensus Estimate of $268 million. The top line also improved from the year-ago quarter’s figure of $228 million.
The strong quarterly results can be attributed to contributions from the Spoolable Technologies segment.
Cactus, Inc. Price, Consensus and EPS Surprise
Cactus, Inc. price-consensus-eps-surprise-chart | Cactus, Inc. Quote
Business Segments
Post-closure of the FlexSteel acquisition, Cactus reported under two business segments — Pressure Control and Spoolable Technologies.
WHD generated revenues of $175.03 million from the Pressure Control segment, down from $194.66 million reported in the year-ago quarter. The segment was adversely impacted by a decline in the sales of wellhead and production-related equipment due to lower customer activity. The top line was above our estimate of $171 million.
Adjusted Segment EBITDA for Pressure Control totaled $60.6 million, down from almost $72.8 million in the prior-year quarter. The reported figure was above our estimate of $56.7 million.
Revenues from the Spoolable Technologies segment came in at $99.1 million, up from $33.8 million in the prior-year quarter. The figure was also above our estimate of $96.3 million.
Adjusted Segment EBITDA for the unit totaled $38.8 million, up from $10.3 million in the prior-year quarter. The figure was also above our estimate of $36.3 million.
Capex and Cash Flow
Cactus’ capital expenditure and other amount for the quarter totaled $7.9 million. Operating cash flow amounted to $86.3 million.
Balance Sheet
Cactus had cash and cash equivalents of $194.3 million at the end of the first quarter of 2024. The company had no bank debt outstanding as of Mar 31, 2024.
Outlook
Cactus expects a sequential decline in U.S. land activity levels in the second quarter of 2024, driven by ongoing weakness in gas prices and global geopolitical uncertainties. However, in the Pressure Control sector, WHD anticipates revenues to remain relatively stable, mainly due to robust sales of production equipment in April. Additionally, Cactus expects a slight increase in revenues from Spoolable Technologies. It expects net capital expenditures to be in the range of $45-$55 million for full-year 2024.
Zacks Rank and Key Picks
Currently, WHD carries a Zacks Rank #4 (Sell).
Investors interested in the energy sector may look at some better-ranked stocks like SM Energy Company (SM - Free Report) , EOG Resources Inc., (EOG - Free Report) and PBF Energy Inc. (PBF - Free Report) . While SM Energy sports a Zacks Rank #1 (Strong Buy), EOG Resources and PBF Energy carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy Company is an independent oil and gas company, engaged in the exploration, exploitation, development, acquisition, and production of oil and gas in North America. SM currently has a Value Score of B.
The Zacks Consensus Estimate for SM’s 2024 and 2025 EPS is pegged at $6.33 and $6.96, respectively. The company has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
EOG Resources, an oil and gas exploration company, boasts attractive growth prospects, top-tier returns, and a disciplined management team, leveraging highly productive acreages in prime oil shale plays like the Permian and Eagle Ford.
The Zacks Consensus Estimate for EOG’s 2024 EPS is pegged at $12.15. The company has a Zacks Style Score of B for Value and A for Momentum. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days.
PBF Energy operates with a diverse asset base of six refineries, boasting higher daily crude processing capacity and a complex refining system, enabling the production of superior-grade refined products.
The Zacks Consensus Estimate for PBF’s 2024 and 2025 EPS is pegged at $7.39 and $5.87, respectively. PBF currently has a Zacks Style Score of A for Value and A for Momentum. Over the past 30 days, PBF has witnessed upward earnings estimate revisions for 2024 and 2025.