Cactus, Inc. Surprises with Strong Earnings Results
Company Beats Expectations for Earnings and Revenue
Cactus, Inc. (WHD) reported quarterly earnings of $0.79 per share, exceeding the Zacks Consensus Estimate of $0.74 per share. This is slightly down from earnings of $0.80 per share in the same quarter last year. These results have been adjusted for non-recurring items.
This earnings report reflects a surprise of 6.76%. In the previous quarter, Cactus had projected earnings of $0.70 per share but delivered $0.81, achieving a surprise of 15.71%.
The company has exceeded consensus EPS estimates in each of the last four quarters, demonstrating consistent performance.
Cactus, part of the Zacks Oil and Gas – Integrated – United States industry, generated revenues of $293.18 million for the quarter ending September 2024, surpassing the Zacks Consensus Estimate by 3.59%. Last year’s revenues for the same quarter were $287.87 million. Similar to its earnings, the company has outperformed consensus revenue expectations for four consecutive quarters.
The future price movement of the stock will largely depend on management’s insights during the earnings call regarding these results and future forecasts.
Since the start of the year, Cactus shares have increased by about 25.8%, compared to the S&P 500’s rise of 22.3%.
Future Outlook for Cactus
Investors are now wondering what lies ahead for Cactus. One of the key factors to consider is the company’s earnings outlook. This encompasses current consensus earnings expectations for upcoming quarters and any recent changes to those expectations.
Research shows a significant link between stock movements in the short term and revisions in earnings estimates. Investors can monitor changes in estimates or utilize tools like the Zacks Rank, which has proven effective at leveraging earnings revisions.
Leading up to this earnings release, the trend for Cactus’s estimate revisions has been mixed. Following the recent report, the stock holds a Zacks Rank #3 (Hold), suggesting it may perform in line with the market in the near term. For a full list of today’s Zacks #1 Rank (Strong Buy) stocks, click here.
It will be intriguing to see how earnings estimates for the upcoming quarters evolve. The current consensus EPS estimate is $0.73 with projected revenues of $276.75 million for the next quarter. For the ongoing fiscal year, estimates stand at $3.04 on revenues of $1.12 billion.
It’s worth considering that industry outlook can significantly affect stock performance. The Zacks Industry Rank indicates that Oil and Gas – Integrated – United States is currently in the bottom 28% of over 250 Zacks industries. History shows that the top half of Zacks-ranked industries tend to outperform the bottom half by more than 2 to 1.
Another company in this sector, Tidewater (TDW), has yet to announce its results for the quarter ending September 2024.
Tidewater is anticipated to report quarterly earnings of $0.79 per share, reflecting a year-over-year increase of 2.6%. The consensus EPS estimate has remained stable over the last month.
Expected revenues for Tidewater are $339.65 million, representing a 13.5% rise compared to last year’s figures.
Is Investing in Cactus, Inc. (WHD) a Wise Move?
Before considering an investment in Cactus, Inc. (WHD), investors are encouraged to explore the top stock picks for the next 30 days. Check out Zacks Investment Research for their free report on the 7 best stocks to buy.
Zacks Investment Research has been providing investors with valuable tools and independent insights since 1978. Over its 25 years of operation, the Zacks Rank stock-rating system has doubled the S&P 500 with an average annual gain of +24.08% (data reflects a period from January 1, 1988, through May 6, 2024).
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Cactus, Inc. (WHD): Free Stock Analysis Report
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
