Cactus, Inc. WHD reported 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.

Cactus, Inc. Price, Consensus and EPS Surprise

Cactus, Inc. price-consensus-eps-surprise-chart | Cactus, Inc. Quote

Business Segments

Following 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 Flow

Cactus’ capital expenditure and other amount for the quarter totaled $10 million. Operating cash flow amounted to $85.3 million.

Balance Sheet

Cactus 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.

Outlook

Cactus 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.

Zacks Rank and Key Picks

Currently, WHD carries a Zacks Rank #3 (Hold).