Oilfield equipment manufacturer Cactus (NYSE: WHD) will be reporting earnings this Wednesday after market close. Here’s what you need to know.
Cactus beat analysts’ revenue expectations last quarter, reporting revenues of $388.3 million, up 38.5% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA and EPS estimates.
Is Cactus a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Cactus’s revenue to grow 46.4% year on year, a reversal from the 5.8% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Cactus has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Cactus’s peers in the upstream & integrated segment, some have already reported their Q2 results, giving us a hint as to what we can expect. World Kinect delivered year-on-year revenue growth of 50.3%, beating analysts’ expectations by 27.7%, and Baker Hughes reported a revenue decline of 2.4%, topping estimates by 3.7%. World Kinect traded up 5.2% following the results while Baker Hughes was also up 5.7%.
Read our full analysis of World Kinect’s results here and Baker Hughes’s results here.
There has been positive sentiment among investors in the upstream & integrated segment, with share prices up 2.2% on average over the last month. Cactus is up 8.6% during the same time and is heading into earnings with an average analyst price target of $63.89 (compared to the current share price of $53.88).
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