Cactus reports Q2 adjusted EPS 81c, consensus 72c

Reports Q2 revenue $290.4M, consensus $276.99M. CEO Scott Bender commented, “I am very proud of our company’s performance in Q2. Pressure Control revenues rose as customer drilling efficiency increased, and we shipped significant production equipment to a large customer who had not previously used Cactus. These events more than offset the impact of the softer U.S. land rig count through the quarter…Looking ahead to Q3 2024, we anticipate that our U.S. land activity levels will remain relatively stable from today’s levels. In Pressure Control, we expect revenue to moderate in the third quarter following the lower average drilling activity levels this year and less visibility into production equipment awards…We believe most of the significant decline in U.S. activity is behind us for the year, although the effects of customer consolidation represent a potential downside to current activity levels…This confidence is reflected in the Board’s recent approval to raise the dividend by 8%. As always, we will continue to responsibly allocate capital to the highest-return opportunities, with a focus on safety, costs, returns, and increasing long-term value for shareholders.”