Cactus, Inc. Reports Strong Earnings, Points to Future Challenges
Cactus, Inc. (WHD) recently announced its quarterly earnings, reporting $0.79 per share. This figure exceeds the Zacks Consensus Estimate of $0.74 per share, though it represents a slight decrease from last year’s earnings of $0.80 per share. These numbers are adjusted for one-time items.
This quarterly report reflects an earnings surprise of 6.76%. In the previous quarter, expectations were set for the company to post earnings of $0.70 per share, but it surprised investors with earnings of $0.81, resulting in an impressive 15.71% surprise.
Consistently, Cactus has surpassed consensus EPS estimates in all four of the last quarters.
Focusing on revenue, Cactus recorded $293.18 million for the quarter that ended in September 2024, which also outperformed the Zacks Consensus Estimate by 3.59%. For comparison, revenues a year ago were $287.87 million. Over the past year, the company has again topped consensus revenue estimates in all four quarters.
The future trajectory of Cactus’s stock price will largely hinge on insights shared during the earnings call regarding future earnings expectations.
Since the beginning of this year, Cactus shares have surged approximately 25.8%. In contrast, the S&P 500 has gained 22.3% during the same period.
Future Projections for Cactus
While Cactus has performed well this year, investors are left wondering about the stock’s future potential.
Determining this future often presents challenges, but looking at earnings outlooks can provide guidance. This encompasses current consensus earnings estimates for upcoming quarters and any recent changes to these expectations.
Empirical evidence demonstrates a notable connection between stock movements and revisions in earnings estimates. Investors can monitor these revisions independently or can utilize tools like the Zacks Rank, which has a strong history of capitalizing on earnings estimate changes.
Leading up to this latest earnings release, Cactus’s estimate revisions trend appeared mixed. The recent report may affect the direction and size of these revisions, but currently, the Zacks Rank for the stock stands at #3 (Hold). This suggests that the stock is likely to perform in line with the market shortly. For those interested, a list of today’s Zacks #1 Rank (Strong Buy) stocks is available.
It will be interesting to observe if estimates for future quarters and the current fiscal year change in the coming days. Presently, the consensus EPS estimate for the upcoming quarter is $0.73, with expected revenues of $276.75 million. For the current fiscal year, the consensus EPS estimate is $3.04, with revenues projected at $1.12 billion.
Investors should consider that the overall industry environment can significantly influence stock performance. Presently, the Oil and Gas – Integrated – United States sector ranks among the bottom 28% of over 250 Zacks industries. Historically, the top half of Zacks-ranked industries outperform those in the bottom half by a margin exceeding 2 to 1.
In a similar vein, Tidewater (TDW), another company within the same industry, has yet to release its results for the quarter ending in September 2024.
Analysts expect Tidewater to report earnings of $0.79 per share, an increase of 2.6% from the previous year. Additionally, the consensus revenue expectation stands at $339.65 million, which marks a 13.5% rise compared to the same quarter last year.
Should You Invest in Cactus, Inc. (WHD)?
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