A month has gone by since the last earnings report for Cactus, Inc. (WHD Quick QuoteWHD - Free Report) . Shares have lost about 5.9% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Cactus, Inc. due for a breakout? 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 catalysts.

Cactus Q3 Earnings Miss Estimates, Revenues Rise Y/Y

Cactus 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.

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.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month.

The consensus estimate has shifted -6.45% due to these changes.

VGM Scores

Currently, Cactus, Inc. has a great Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. 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. belongs to the Zacks Oil and Gas - Integrated - United States industry. Another stock from the same industry, Antero Midstream Corporation (AM Quick QuoteAM - Free Report) , has gained 1.9% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.

Antero Midstream Corporation reported revenues of $263.84 million in the last reported quarter, representing a year-over-year change of +14.2%. EPS of $0.23 for the same period compares with $0.20 a year ago.

Antero Midstream Corporation is expected to post earnings of $0.21 per share for the current quarter, representing a year-over-year change of +5%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.9%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Antero Midstream Corporation. Also, the stock has a VGM Score of D.