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Cactus Q3 revenue misses estimates on pressure control decline

By Reuters News


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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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