Cactus (WHD) Q2 Earnings Beat Estimates, Revenues Rise Y/Y
Cactus, Inc. WHD reported second-quarter 2023 adjusted earnings of 84 cents per share, which beat the Zacks Consensus Estimate of 69 cents. The bottom line also rose from the year-ago quarter’s level of 44 cents.
Total quarterly revenues of $306 million beat the Zacks Consensus Estimate of $303 million. The top line also improved from the year-ago quarter’s figure of $170 million.
Cactus’ strong quarterly results were aided by increased revenues from the Pressure Control segment as a result of increased 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, while the other is Spoolable Technologies.
Cactus generated revenues of $199.1 million from the Pressure Control segment, up from $170.2 million in the comparable period of 2022. The reported figure also came in higher than our estimate of $194.9 million.
Adjusted Segment EBITDA for the unit totaled $69.9 million, up from $55.5 million in the prior-year quarter. Our estimate for the same was pegged at $70 million. The segment was supported by increased customer drilling activities.
Spoolable Technologies' revenues amounted to $106.7 million, higher than our estimate of $105 million. Adjusted Segment EBITDA for the unit came in at $45.5 million, exceeding our estimate of $41.5 million.
Capex and Cash Flow
Cactus’ second-quarter 2023 capital expenditures and other amount totaled $23.7 million. Operating cash flow amounted to $168.5 million.
Balance Sheet
At the end of the second quarter, Cactus had cash and cash equivalents of $63.9 million. It had gross bank debt of $55.0 million.
Guidance
For 2023, Cactus expects its net capital expenditure in the band of $35-$45 million, based on lowered expectations for near-term growth spending.
Zacks Rank & Stocks to Consider
Currently, Cactus carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy space are CVR Energy Inc. CVI, Murphy USA Inc. MUSA and Crestwood Equity Partners LP CEQP. While CVI sports a Zacks Rank #1 (Strong Buy), both MUSA and CEQP carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
CVR Energy is an independent refiner and marketer of high value transportation fuels. Headquartered in Sugar Land, TX, CVI has 1,470 employees. It is also engaged in nitrogen fertilizer manufacturing business through its interest in CVR Partners, LP.
Murphy USA serves 1.6 million customers daily and owns a dedicated line on the Colonial Pipeline. It operates stations near Walmart supercenters and is a low-cost, high-volume fuel seller. This enables the company to attract significantly more transactions than its peers.
Headquartered in Houston, TX, Crestwood is a master limited partnership that provides a wide range of fee-based infrastructure solutions in major U.S. shale plays like the Bakken Shale, Delaware Basin, Powder River Basin, Marcellus Shale and others. The company is least exposed to commodity price fluctuations since it generates stable fee-based revenues from diverse midstream energy assets via long-term contracts.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CVR Energy Inc. (CVI) : Free Stock Analysis Report
Murphy USA Inc. (MUSA) : Free Stock Analysis Report
Crestwood Equity Partners LP (CEQP) : Free Stock Analysis Report
Cactus, Inc. (WHD) : Free Stock Analysis Report
