![]() ![]() Notably, their activity picked up in Q1 and accelerated in Q2, consistent with a bottom formed on the chart. The institutions own about 83% of the stock and have been buying on balance for the last year. Added to an active institutional base, that’s a strong tailwind for share prices. The increase in cash flow also allows the repayment of the debt, which frees up cash flow which could be used for dividend increases or additional repurchases. That’s worth 4.7% of the market cap and can be expected to increase over time. More importantly, the company expects a significant and sustained improvement in cash flow and initiated a repurchase program to prove its confidence.Ĭactus’ board of directors authorized repurchases of up to $150 million. That’s compared to the prior outlook of up to $105 million and 3X better than Q1. A surge in demand for both segments led management to increase the outlook for Pressure Control to flat to slightly up from down single digits and for Spoolable Technologies revenue of at least $105 million. The company issued favorable guidance for Q2 with the Q1 report and raised it just a month later. What that means for Cactus is steady demand for core services in the new Pressure Control (legacy Cactus) segment and a surge in demand for the new Spoolable Technologies segment, the legacy Flexsteel business. The energy companies know they have to do whatever it takes to keep people happy to remain viable, including investments in technology. That shift is toward lower-cost, higher-efficiency technology spurred by the green revolution. Cactus Raises Guidance And Announces Repurchase ProgramĬactus is benefiting from a shift in the oilfield that is driving and supporting a global boom in oilfield services. This is good news for investors because it increases dividend safety and paves a path for debt reduction, which the company has already flagged as a priority. The takeaway from the report is that more opportunities are present than previously thought, industry trends support the business outlook and cash flow is improving. ![]()
0 Comments
Leave a Reply. |