Key Highlights

  • Consensus EPS of 0.77 compares with second-quarter diluted EPS of 0.70 per Class A share, against 0.59 a year earlier.
  • Consensus revenue of USD 437.94 million compares with second-quarter revenue of USD 449,528 thousand, against USD 273,575 thousand.
  • Operating income was USD 83,582 thousand against USD 60,805 thousand, and net income was USD 61,380 thousand.
  • Average WTI and Brent oil prices rose about 31% and 27% from the first quarter, with land drilling up 2%.

Cactus (NYSE:WHD) reports third-quarter results on Wednesday, Oct. 28, with the timing not given in the estimates table. Consensus stands at EPS of 0.77 on revenue of USD 437.94 million, and the company has a market capitalization of USD 5.16 billion.

Cactus reports Pressure Control and Spoolable Technologies results, and its filing describes a joint venture holding Baker Hughes' former surface pressure control business. Second-quarter revenue was USD 449,528 thousand against USD 273,575 thousand, and net income attributable to Cactus was USD 48,996 thousand against USD 40,329 thousand.

Estimates Against the Last Reported Quarter

The EPS estimate of 0.77 is above the second-quarter diluted EPS of 0.70 per Class A share, which compared with 0.59 a year earlier. The estimates table does not state its EPS basis. The revenue estimate of USD 437.94 million is below the USD 449,528 thousand reported, which compared with USD 273,575 thousand.

Basic EPS was 0.70 against 0.59, and the dividend declared was 0.14 per share against 0.13. Cost of revenue was USD 299,811 thousand against USD 173,580 thousand.

What the Filing Gives and What the Sources Leave Open

The sources supplied include no earnings call transcript or published guidance, so there are no management ranges to set against the estimates. The filing carries no figures for the quarter the estimates cover.

The filing states that average WTI and Brent oil prices rose about 31% and 27% in the second quarter compared with the first quarter, as the war in Iran and associated supply disruption led to elevated commodity prices. It states that average U.S. land drilling activity was up 2% from the first quarter.

Operating Expenses, Income Lines and the Joint Venture

Total operating expenses were USD 365,946 thousand against USD 212,770 thousand, and operating income was USD 83,582 thousand against USD 60,805 thousand. Income before income taxes was USD 84,531 thousand against USD 63,323 thousand.

The filing describes a cash purchase price of USD 344.5 million for membership interests in the Baker Hughes Pressure Control joint venture. Net income was USD 61,380 thousand against USD 49,047 thousand.

Cash, Receivables and Inventories

Cash and cash equivalents were USD 365,821 thousand against USD 123,571 thousand at year end, and restricted cash was zero against USD 371,011 thousand. Accounts receivable, net were USD 510,195 thousand against USD 164,493 thousand.

Inventories were USD 387,041 thousand against USD 276,613 thousand, and total current assets were USD 1,283,204 thousand against USD 954,919 thousand. Net income attributable to Cactus was USD 48,996 thousand. The estimates table lists a market capitalization of USD 5.16 billion.

Items to Track in the Report

Reported EPS against 0.77 and revenue against USD 437.94 million are the headline comparisons. Other markers are operating income, oil prices and the joint venture.