It has been about a month since the last earnings report for Cactus, Inc. (WHD - Free Report) . Shares have added about 1.7% in that time frame, underperforming 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 the most recent earnings report in order to get a better handle on the important drivers.
Cactus Q1 Earnings & Revenues Beat Estimates
Cactus reported first-quarter adjusted earnings of 64 cents per share, beating the Zacks Consensus Estimate of 56 cents. The bottom line rose from the year-ago quarter’s 30 cents.
Total quarterly revenues of $228 million beat the Zacks Consensus Estimate of $214 million. The top line improved from the year-ago quarter’s $146 million.
Increased customer drilling activities aided the strong quarterly results.
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.
From the Pressure Controlbusiness segment, Cactus generated revenues of $194.7 million, increasing from $145.9 million in the March quarter of 2022. Adjusted Segment EBITDA from the unit was $69.1 million, improving from $42.3 million in the prior-year quarter. The segment was supported by increased customer drilling activities.
Spoolable Technologies' revenues were $33.8 million. Adjusted Segment EBITDA from the unit was $10.3 million.
Capex and Cash Flow
Cactus’ first-quarter 2023 capital expenditures and other amount was $15.9 million. In the reported quarter, the operating cash flow was $60.5 million.
Balance Sheet
At the first-quarter end, Cactus had cash and cash equivalents of $75.4 million. It had gross bank debt of $155.0 million.
Guidance
For 2023, Cactus gave its net capital expenditure guidance in the band of $45 million to $55 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
Currently, Cactus, Inc. has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, 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 broadly 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, Hess (HES - Free Report) , a stock from the same industry, has gained 1.4%. The company reported its results for the quarter ended March 2023 more than a month ago.
Hess reported revenues of $2.45 billion in the last reported quarter, representing a year-over-year change of +3.5%. EPS of $1.13 for the same period compares with $1.30 a year ago.
For the current quarter, Hess is expected to post earnings of $1.12 per share, indicating a change of -47.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -14.5% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Hess. Also, the stock has a VGM Score of D.
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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 1.7% in that time frame, underperforming 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 the most recent earnings report in order to get a better handle on the important drivers.
Cactus Q1 Earnings & Revenues Beat Estimates
Cactus reported first-quarter adjusted earnings of 64 cents per share, beating the Zacks Consensus Estimate of 56 cents. The bottom line rose from the year-ago quarter’s 30 cents.
Total quarterly revenues of $228 million beat the Zacks Consensus Estimate of $214 million. The top line improved from the year-ago quarter’s $146 million.
Increased customer drilling activities aided the strong quarterly results.
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.
From the Pressure Controlbusiness segment, Cactus generated revenues of $194.7 million, increasing from $145.9 million in the March quarter of 2022. Adjusted Segment EBITDA from the unit was $69.1 million, improving from $42.3 million in the prior-year quarter. The segment was supported by increased customer drilling activities.
Spoolable Technologies' revenues were $33.8 million. Adjusted Segment EBITDA from the unit was $10.3 million.
Capex and Cash Flow
Cactus’ first-quarter 2023 capital expenditures and other amount was $15.9 million. In the reported quarter, the operating cash flow was $60.5 million.
Balance Sheet
At the first-quarter end, Cactus had cash and cash equivalents of $75.4 million. It had gross bank debt of $155.0 million.
Guidance
For 2023, Cactus gave its net capital expenditure guidance in the band of $45 million to $55 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
Currently, Cactus, Inc. has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, 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 broadly 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, Hess (HES - Free Report) , a stock from the same industry, has gained 1.4%. The company reported its results for the quarter ended March 2023 more than a month ago.
Hess reported revenues of $2.45 billion in the last reported quarter, representing a year-over-year change of +3.5%. EPS of $1.13 for the same period compares with $1.30 a year ago.
For the current quarter, Hess is expected to post earnings of $1.12 per share, indicating a change of -47.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -14.5% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Hess. Also, the stock has a VGM Score of D.
Where Will Stocks Go…
If Biden Wins? If Trump Wins?
The answers may surprise you.
Since 1950, even after negative midterm years, the market has never had a lower presidential election year. With voters energized and engaged, the market has been almost unrelentingly bullish no matter which party wins!
Now is the time to download Zacks' free Special Report with 5 stocks that offer extreme upside for both Democrats and Republicans…
1. Medical manufacturer has gained +11,000% in the last 15 years.
2. Rental company is absolutely crushing its sector.
3. Energy powerhouse plans to grow its already large dividend by 25%.
4. Aerospace and defense standout just landed a potentially $80 billion contract.
5. Giant Chipmaker is building huge plants in the U.S.
Hurry, Download Special Report FREE >>
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