Cactus earnings: what to look for from WHD

What happened

Cactus, an oilfield equipment manufacturer, will report results on Wednesday after the market closes. Last quarter it reported revenue of $449.5 million, up 64.3% year on year, beating analysts' revenue, earnings per share and EBITDA estimates.

Confirmed

Global impact / market context

The market expects revenue to grow 63.5% this quarter, so the report will show whether Cactus can repeat last quarter's strong sales and profit beat, which matters to investors holding the stock.

Analyst inference

Peers Kinder Morgan and SLB already reported modest revenue growth and beat estimates, but their share prices reacted differently, showing that results alone do not decide how a stock moves after earnings.

Analyst inference

What to watch

1. Watch whether Cactus's revenue matches the 63.5% year-on-year growth the market expects this quarter. Confirmed
2. Watch whether Cactus meets or misses Wall Street's revenue estimates again, since it has missed multiple times over the last two years. Analyst inference
3. Watch how the share price reacts to the results, given that peers in the upstream and integrated segment reacted differently to their reports. Proposed

Evidence

• stockstory.org