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Jun 30, 2020

Cactus Q2 2020 Earnings Report

Cactus reported mixed results for Q2 2020, with revenue declining but EPS exceeding expectations.

Key Takeaways

Cactus reported a decrease in revenue compared to the previous year, but EPS surpassed analyst estimates. The company faced headwinds from reduced drilling and completion activity, but cost management efforts helped to mitigate the impact on profitability. Management provided cautious guidance for the upcoming quarter, citing continued uncertainty in the oil and gas market.

Revenue decreased due to lower drilling and completion activity.

Earnings per share exceeded analyst expectations.

Cost reduction initiatives helped to improve profitability.

Management provided cautious guidance for the next quarter.

Total Revenue
$66.5M
Previous year: $168M
-60.5%
EPS
$0.1
Previous year: $0.52
-80.8%
Operating income margin
0.1%
Gross Profit
$24.9M
Previous year: $64.7M
-61.5%
Cash and Equivalents
$47.1M
Previous year: $131M
-64.1%
Total Assets
$545M
Previous year: $794M
-31.4%

Cactus

Cactus

Cactus Revenue by Geographic Location

Forward Guidance

The company expects continued uncertainty in the oil and gas market to impact results in the next quarter. They anticipate revenue to be in the range of $75 million to $85 million.

Positive Outlook

  • Potential for increased drilling activity.
  • Continued cost management efforts.
  • Strong balance sheet.
  • Opportunity to gain market share.
  • Positive long-term outlook for the energy sector.

Challenges Ahead

  • Continued uncertainty in the oil and gas market.
  • Potential for further declines in drilling activity.
  • Pricing pressure from competitors.
  • Impact of COVID-19 pandemic.
  • Geopolitical risks.

Revenue & Expenses

Visualization of income flow from segment revenue to net income