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Cactus Tops Q3 Earnings and Revenues, Lowers FY'24 Capex View
WHDCactus(WHD) ZACKS·2024-10-31 13:46

Core Insights - Cactus, Inc. (WHD) reported third-quarter 2024 adjusted earnings of 79 cents per share, exceeding the Zacks Consensus Estimate of 74 cents, but down from 80 cents in the same quarter last year [1] - Total revenues for the quarter were 293.2million,surpassingtheZacksConsensusEstimateof293.2 million, surpassing the Zacks Consensus Estimate of 283 million and increasing from 288millionyear−over−year[1]RevenuePerformance−TheimprovedquarterlyresultsweredrivenbyincreasedrevenuesfrombothPressureControlandSpoolableTechnologiessegments,althoughlowercustomerdrillingactivityinthePressureControlsegmentpartiallyoffsetthisgrowth[2]−PressureControlsegmentrevenuesreached288 million year-over-year [1] Revenue Performance - The improved quarterly results were driven by increased revenues from both Pressure Control and Spoolable Technologies segments, although lower customer drilling activity in the Pressure Control segment partially offset this growth [2] - Pressure Control segment revenues reached 185.1 million, up from 182.5millionintheprioryear,andexceededtheestimateof182.5 million in the prior year, and exceeded the estimate of 178 million [3] - Spoolable Technologies segment revenues were 108.2million,anincreasefrom108.2 million, an increase from 103.7 million year-over-year, also above the estimate of 100.6million[4]SegmentEBITDA−AdjustedSegmentEBITDAforPressureControlwas100.6 million [4] Segment EBITDA - Adjusted Segment EBITDA for Pressure Control was 61.9 million, down from 65.3millionintheprioryearbutabovetheestimateof65.3 million in the prior year but above the estimate of 61.2 million [4] - Adjusted Segment EBITDA for Spoolable Technologies remained flat year-over-year at 42.5million,exceedingtheestimateof42.5 million, exceeding the estimate of 40 million [5] Capital Expenditure and Cash Flow - Cactus' capital expenditure for the quarter totaled 10million,whileoperatingcashflowwasreportedat10 million, while operating cash flow was reported at 85.3 million [6] Balance Sheet - At the end of Q3 2024, Cactus had cash and cash equivalents of 303.4millionandnooutstandingbankdebt[7]Outlook−ThecompanyanticipatessubduedU.S.landdrillingactivitylevels,withtheU.S.landrigcountexpectedtoremainstablebutmayfacereductionsduetoseasonalfactorsandbudgetconstraints[8]−Cactusexpectsnetcapitalexpendituresforthefullyear2024tobeintherangeof303.4 million and no outstanding bank debt [7] Outlook - The company anticipates subdued U.S. land drilling activity levels, with the U.S. land rig count expected to remain stable but may face reductions due to seasonal factors and budget constraints [8] - Cactus expects net capital expenditures for the full year 2024 to be in the range of 32-37million,downfromthepreviousguidanceof37 million, down from the previous guidance of 35-$45 million [9]