NYSE$WHD

Cactus · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Cactus reported revenue of $140.2 million, income from operations of $36.1 million, and net income of $31.3 million for Q4 2019.

Cactus announced its Q4 and Full Year 2019 results, reporting Q4 revenue of $140.2 million and net income of $31.3 million. Despite a decline in the U.S. onshore rig count, the company's results were consistent with expectations, and the overall margin profile remained strong. Cactus highlighted its ability to generate significant free cash flow, with cash growing by over $35 million during the quarter.

  • Reported revenue of $140.2 million.
  • Generated income from operations of $36.1 million.
  • Reported net income of $31.3 million and diluted earnings per Class A share of $0.38.
  • Generated cash flow from operations during the fourth quarter of 2019 of $61.4 million.

Headline financials

Total Revenue

$140M

Previous: $140M+0.3%
EPS (adj)

$0.37

Previous: $0.45-17.8%
Adjusted EBITDA

$48.4M

No prior period
Operating Income Margin

25.7%

No prior period
Free Cash Flow

$61.4M

No prior period
Net Income

$31.3M

Previous: $16.9M+84.8%
Operating Income

$36.1M

Previous: $43.9M-17.7%
Cash & Equivalents

$203M

Previous: $70.8M+186.0%
Total Assets

$835M

Previous: $585M+42.8%

Revenue & EPS history

Cactus · Revenue · Quarterly

$140M

Q4 2019+0.3%vs Q4 2018
Beat estimate in 10 of 11 quarters(91%)
ActualEstimate

Forward guidance

Cactus anticipates that revenue across all its business lines will increase relative to the fourth quarter of 2019. Additionally, the adoption of our new frac innovations has continued to progress during the first quarter.

Tailwinds

  • Customers have again shown a willingness to quickly increase completion activity following the reset of budgets in January.
  • Anticipate that revenue across all our business lines will increase relative to the fourth quarter of 2019.
  • The adoption of our new frac innovations has continued to progress during the first quarter.
  • Believe the capital-light nature of the business will further separate us from our peers.
  • Expect 2020 to highlight our ability to gain market share at attractive margins and generate substantial free cash flow.

Headwinds

  • Larger than anticipated decline in the overall U.S. onshore rig count during the fourth quarter.
  • Typical seasonal slowdown in Field Service due in part to lower completions activity driven by E&P budget exhaustion.
  • Travel restrictions, quarantines and other measures being taken by the Chinese government in response to the recent coronavirus outbreak affected our Chinese supply chain in February.
  • Should there be additional measures taken by the Chinese government in response to negative developments in the outbreak, it could impact our future operating results.
  • Progress is being made toward returning our supply chain to full capacity.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2019

Historical avgQ4 2019

+1.5%

Avg return

Earnings day

+2.6%

Avg return

5 days after

+0.6%

Avg return

30 days after

67%

22 / 33 earnings

Positive

+15.7%

Q1 2020

Best reaction

-11.2%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.5%-0.1%+0.8%
Q4 2025-11.2%-13.4%-16.6%
Q3 2025+2.0%+2.1%+1.5%
Q1 2025+4.6%+4.9%+8.1%
Q4 2024-8.9%-15.1%-20.1%
Q3 2024+3.9%+7.5%+20.3%
Q2 2024+6.7%+9.0%+5.0%
Q1 2024-0.7%-1.6%-9.0%
Q4 2023-0.2%-1.0%+7.1%
Q3 2023+0.1%+1.0%-4.6%
Q2 2023+2.8%+3.9%+10.4%
Q1 2023-3.6%-8.8%+6.0%
Q4 2022+0.3%-2.7%-20.3%
Q3 2022+6.8%+7.5%-4.8%
Q2 2022+2.3%+10.2%+4.8%
Q1 2022-7.4%-15.3%+0.4%
Q4 2021-0.5%+5.8%+17.9%
Q3 2021-4.6%+0.4%-18.6%
Q2 2021+1.7%-0.1%+5.4%
Q1 2021+8.1%+2.5%+22.2%
Q4 2020+10.4%-2.8%-6.6%
Q3 2020+3.7%+29.6%+51.5%
Q2 2020+1.9%+6.1%+5.2%
Q1 2020+15.7%+6.6%+24.1%
Q4 2019-3.4%+6.6%-57.3%
Q3 2019+1.6%+6.9%+3.2%
Q2 2019+1.7%-4.8%-13.7%
Q1 2019+2.2%+3.6%-10.3%
Q4 2018-1.0%+2.7%+3.4%
Q3 2018+4.7%+10.5%-13.8%
Q2 2018+4.9%+5.9%+4.5%
Q1 2018+6.0%+12.5%+12.5%
Q4 2017+3.3%+4.7%+2.2%
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016

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