HomeMost PopularInvesting Cactus, Inc. (WHD) Anticipates Q4 Earnings: What's Coming Up? Cactus, Inc. (WHD) Anticipates...

Cactus, Inc. (WHD) Anticipates Q4 Earnings: What’s Coming Up? Cactus, Inc. (WHD) Anticipates Q4 Earnings: What’s Coming Up?

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Cactus, Inc. WHD is scheduled to release its fourth-quarter 2023 earnings after the closing bell on Feb 28.

In the previous quarter, the company reported earnings of 80 cents per unit, falling slightly short of the Zacks Consensus Estimate of 81 cents. Encouragingly, Cactus’ earnings outperformed the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 11.6%. A visual representation of this performance is illustrated below.

Cactus, Inc. Performance vs. Expectations

Cactus, Inc. Price and EPS Surprise

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

Estimate Trend

The Zacks Consensus Estimate for fourth-quarter earnings per unit remains unchanged at 68 cents over the past 30 days. This estimated figure indicates an improvement from the year-ago reported number.

Moreover, the Zacks Consensus Estimate for fourth-quarter revenues of $266.6 million reflects a significant 41.9% increase from the figure reported in the same period last year.

Key Considerations

According to data from the U.S. Energy Information Administration, the average spot West Texas Intermediate crude prices per barrel in October, November, and December were $85.64, $77.69, and $71.90, respectively. While these prices were lower compared to the year-ago quarter, they remained substantial and healthy, hovering above the $70 per barrel mark.

Conversely, natural gas prices in the December quarter also experienced a decline year over year.

The decrease in commodity prices led to a reduction in exploration and production activities in the fourth quarter. This decline likely impacted the demand for Cactus’ engineered pressure control and spoolable pipe technologies, which are extensively used in onshore unconventional oil and gas wells.

Earnings Prediction

Speculations suggest that WHD might not exceed the earnings forecast this time. An optimisticΒ Earnings ESPΒ and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) are usually indicative of an impending earnings beat. However, WHD currently fails to meet these criteria, as detailed below.

Earnings ESP: WHD’s Earnings ESP is 0.00%. You can find the most promising stocks to trade before their earnings release using ourΒ Earnings ESP Filter.

Zacks Rank: The company currently bears a Zacks Rank #4 (Sell).

Alternative Investment Options

Here are three entities within the energy sector that investors might consider, given their potential to outperform earnings expectations in the current cycle.

Constellation Energy Corporation (CEG) currently boasts an Earnings ESP of +2.05% and holds a Zacks Rank #2. ExploreΒ the complete list of today’s Zacks #1 Rank stocks here.

Scheduled to announce fourth-quarter earnings on Feb 27, CEG’s Zacks Consensus Estimate stands at $1.71 per share, implying a substantial improvement from the year-ago figure.

Kinetik Holdings Inc. (KNTK) presently possesses an Earnings ESP of +0.73% and a Zacks Rank #3.

Kinetik Holdings is set to unveil its fourth-quarter earnings on Feb 28, with the Zacks Consensus Estimate for KNTK’s earnings at 46 cents per share.

PHX Minerals Inc. (PHX) has an Earnings ESP of +9.09% and currently holds a Zacks Rank #3.

PHX Minerals is slated to report its results on Mar 12, with the Zacks Consensus Estimate for its earnings at 6 cents per share, reflecting a decline from the previous year.

Track upcoming earnings announcements with theΒ Zacks Earnings Calendar.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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