Cactus reports Q3 adjusted EPS 79c, consensus 75c

Reports Q3 revenue $293.2M, consensus $288.09M. CEO Scott Bender commented, “Revenues in both segments surpassed our expectations for Q3. I am particularly proud of our Spoolable Technologies associates who have driven continued segment revenue outperformance against softer year-to-date U.S. land activity trends. In addition, we generated substantial free cash flow in Q3 with improved working capital performance, and increased our cash balance by $57M despite making the final earn-out payment of $37M to the sellers of FlexSteel. In Q42024, we anticipate that the U.S. land rig count will remain stable from today’s levels, with some potential for reductions in customer activity late in the quarter due to the holidays, weather, consolidations and the possibility of some customer budget exhaustion…Although the outlook for U.S. land drilling activity remains subdued, our business continues to outperform, generating industry-leading returns and substantial free cash flow. In Q3, we pursued a growth opportunity and incurred non-routine Corporate expenses as a result of this effort. We are no longer pursuing this specific opportunity. Our leadership team remains substantial equity owners, we will continue to be highly disciplined stewards of our capital and resources, and we will continue to pursue opportunities that enhance the Cactus (WHD) value proposition and build long-term value for our shareholders.”