Why Is Cactus (WHD) Up 14.2% Since Last Earnings Report?

A month has gone by since the last earnings report for Cactus, Inc. (WHD). Shares have added about 14.2% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Cactus 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 catalysts. Cactus Tops Q3 Earnings and RevenuesCactusreported third-quarter 2024 adjusted earnings of 79 cents per share, which beat the Zacks Consensus Estimate of 74 cents. However, the bottom line declined from the year-ago quarter’s 80 cents.Total quarterly revenues of $293.2 million beat the Zacks Consensus Estimate of $283 million. The top line increased from the year-ago figure of $288 million.The better-than-expected quarterly results can be attributed to increased revenues from both segments. This was partially offset by lower customer drilling activity in the Pressure Control segment. Business SegmentsFollowing the closure of the FlexSteel acquisition, Cactus reported under two business segments — Pressure Control and Spoolable Technologies.WHD generated revenues of $185.1 million from the Pressure Control segment, up from $182.5 million reported in the year-ago quarter. The segment was partially affected by decreased customer drilling and completion activity. The top line was above our estimate of $178 million.Adjusted Segment EBITDA for Pressure Control totaled $61.9 million, down from $65.3 million in the prior-year quarter. The reported figure was above our estimate of $61.2 million.Revenues from the Spoolable Technologies segment came in at $108.2 million, up from $103.7 million in the prior-year quarter. The figure was above our estimate of $100.6 million. The segment was aided by increased customer activity levels.Adjusted Segment EBITDA for the unit totaled $42.5 million, flat year over year. The figure was above our estimate of $40 million.Capex and Cash FlowCactus’ capital expenditure and other amount for the quarter totaled $10 million. Operating cash flow amounted to $85.3 million.Balance SheetCactus had cash and cash equivalents of $303.4 million at the end of the third quarter of 2024. The company had no bank debt outstanding as of Sept. 30, 2024.OutlookCactus expects relatively subdued U.S. land drilling activity levels. In the fourth quarter, the U.S. land rig count is expected to remain stable, with possible activity reductions due to seasonal factors and budget constraints. Pressure Control may see modest sales reversion, with Spoolable Technologies facing typical seasonal contraction, partially offset by international demand.It expects net capital expenditures to be in the band of $32-$37 million for full-year 2024, down from the previously guided range of $35-$45 million.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates review.VGM ScoresCurrently, Cactus has a nice Growth Score of B, a grade with the same score on the momentum front. However, 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.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of this revision has been net zero. Notably, Cactus has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Free Today: Profiting from The Future’s Brightest Energy SourceThe demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. Nuclear energy is an ideal replacement.Leaders from the US and 21 other countries recently committed to TRIPLING the world’s nuclear energy capacities. This aggressive transition could mean tremendous profits for nuclear-related stocks – and investors who get in on the action early enough.Our urgent report, Atomic Opportunity: Nuclear Energy's Comeback, explores the key players and technologies driving this opportunity, including 3 standout stocks poised to benefit the most.Download Atomic Opportunity: Nuclear Energy's Comeback free today.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 Cactus, Inc. (WHD): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks