Why Is Cactus (WHD) Down 1% Since Last Earnings Report?

It has been about a month since the last earnings report for Cactus, Inc. (WHD). Shares have lost about 1% in that time frame, underperforming the S&P 500.But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Cactus due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Cactus, Inc. before we dive into how investors and analysts have reacted as of late.Cactus Q2 Earnings and Revenues Miss EstimatesCactus, Inc. reported second-quarter 2025 adjusted earnings of 66 cents per share, which missed the Zacks Consensus Estimate of 67 cents. The bottom line declined from the year-ago quarter’s figure of 81 cents.Total quarterly revenues of $273.6 million missed the Zacks Consensus Estimate of $276 million. The top line declined from the year-ago figure of $290 million.The weak quarterly earnings can be attributed to lower U.S. land activity and tariff impacts.Business SegmentsFollowing the closure of the FlexSteel acquisition, Cactus started reporting under two business segments — Pressure Control and Spoolable Technologies.The Pressure Control segment generated revenues of $179.8 million, down from $187.2 million reported in the year-ago quarter. The segment was impacted by lower frac equipment rental. The top line was below our estimate of $180.5 million.Adjusted Segment EBITDA for Pressure Control totaled $53.1 million, down from $64.8 million in the prior-year quarter. The reported figure missed our estimate of $59.7 million.Revenues from the Spoolable Technologies segment totaled $96.2 million, down from $103.7 million in the prior-year quarter. The figure beat our estimate of $93.7 million. The segment was aided by improved manufacturing efficiency in the quarter.Adjusted Segment EBITDA for the unit totaled $37.9 million, down from $42.5 million a year ago. The figure beat our estimate of $32.8 million.Capex and Cash FlowCactus’ capital expenditure and other amounts for the quarter totaled $11.1 million. Operating cash flow totaled $82.8 million.Balance SheetCactus had cash and cash equivalents of $405.2 million at the end of the second quarter of 2025. The company had no bank debt outstanding as of June 30, 2025.OutlookWHD expects a decline in the U.S. land rig count for the third quarter of 2025. For full-year 2025, WHD expects net capital expenditures to be in the range of $40-$45 million.How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended downward during the past month.The consensus estimate has shifted -10.61% due to these changes.VGM ScoresAt this time, Cactus has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock has a score of C on the value side, putting it in the middle 20% for value investors.Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Cactus has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cactus, Inc. (WHD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks