Cactus Q3 revenue misses estimates on pressure control decline
Overview
U.S. oilfield equipment maker's Q3 revenue declined sequentially and missed analyst expectations
Adjusted EPS for Q3 beat analyst expectations
Company approved new Spoolable Technologies plant in the Middle East
Outlook
Company expects consolidated revenue to modestly increase in Q4 2026
Company anticipates Q4 Pressure Control revenue to increase modestly from Q3
Company expects Q4 Spoolable Technologies sales to be up slightly
Result Drivers
SPOOLABLE TECHNOLOGIES GROWTH - Co said segment sales expanded on record international shipments with strong margins
PRESSURE CONTROL DECLINE - Co attributed lower segment revenue to reduced product shipments in the Middle East
MARGIN RESILIENCE - Co said Pressure Control margins improved due to strong spares and repair margins in the Middle East and lower purchase price accounting-related adjustments
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $430.89 mln | $436.21 mln (6 Analysts) |
Q3 Adjusted EPS | Beat | $0.96 | $0.77 (8 Analysts) |
Q3 Adjusted Net Income | $77.99 mln | ||
Q3 Net Income | $74.09 mln | ||
Q3 Adjusted EBITDA | Beat | $132.03 mln | $122.69 mln (8 Analysts) |
Q3 Adjusted EBITDA Margin | 30.60% | ||
Q3 Operating Income | $94.05 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the oil related services and equipment peer group is "buy"
Wall Street's median 12-month price target for Cactus, Inc. is $73.00, about 13.5% above its October 28 closing price of $64.34
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 16 three months ago
Reuters Recommended Reads
Oct 28 - Oilfield services firms lean on Middle East rebound but risks persist
Oct 27 - Baker Hughes Q3 net income down by a third on Chart deal costs despite revenue, adj EPS beat
Oct 27 - Nabors Q3 revenue beats estimates
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)