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Cactus, Inc. (WHD - Free Report) declined 12.4% despite reporting strong first-quarter 2023 earnings on May 9. Investors were probably concerned about the broader uncertain macro scenario. However, increased customer drilling activities aided the quarterly results.
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.
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.
Murphy USA is a leading retailer of gasoline. MUSA has more than 1,700 stores and has witnessed upward earnings estimate revisions for 2023 earnings in the past seven days.
Sunoco, a distributor of motor fuel to approximately 10,000 convenience stores, has a stable business model. For this year, SUN has witnessed upward earnings estimate revisions in the past seven days.
Dril-Quip is a well-known name for being a leading provider of highly engineered equipment, service and innovative technologies that are being employed in the energy sector.
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Cactus (WHD) Stock Declines 12.4% Despite Q1 Earnings Beat
Cactus, Inc. (WHD - Free Report) declined 12.4% despite reporting strong first-quarter 2023 earnings on May 9. Investors were probably concerned about the broader uncertain macro scenario. However, increased customer drilling activities aided the quarterly results.
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.
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.
Zacks Rank & Stocks to Consider
Currently, Cactus carries a Zacks Rank #3 (Hold). Better-ranked players in the energy space include Murphy USA Inc. (MUSA - Free Report) , Sunoco LP (SUN - Free Report) and Dril-Quip, Inc. (DRQ - Free Report) . While Murphy USA and Dril-Quip carry a Zacks Rank #2 (Buy), Sunoco sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Murphy USA is a leading retailer of gasoline. MUSA has more than 1,700 stores and has witnessed upward earnings estimate revisions for 2023 earnings in the past seven days.
Sunoco, a distributor of motor fuel to approximately 10,000 convenience stores, has a stable business model. For this year, SUN has witnessed upward earnings estimate revisions in the past seven days.
Dril-Quip is a well-known name for being a leading provider of highly engineered equipment, service and innovative technologies that are being employed in the energy sector.