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Why Is U.S. Silica (SLCA) Up 7.4% Since Its Last Earnings Report?
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A month has gone by since the last earnings report for U.S. Silica Holdings, Inc. (SLCA - Free Report) . Shares have added about 7.4% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is SLCA due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
U.S. Silica’s Q4 Earnings Trail, Revenues Top Estimates
U.S. Silica recorded a profit of $72 million or 88 cents per share in the fourth quarter of 2017 against a net loss of $6.9 million or 9 cents in the year-ago quarter.
Barring one-time items, U.S. Silica’s adjusted earnings came in at 51 cents per share in the quarter, lagging the Zacks Consensus Estimate of 55 cents.
Revenues for the reported quarter were $360.6 million, a 98% year-over-year jump. It surpassed the Zacks Consensus Estimate of $359.2 million.
Full-Year 2017 Results
For 2017, U.S. Silica reported net income of $145.2 million or $1.77 per share against net loss of $41.1 million or 63 cents per share in 2016.
Total revenues jumped a whopping 122% to $1.24 billion.
Segment Highlights
Revenues for the Oil & Gas division were $306 million in the quarter, a roughly 123% year-over-year surge. Overall sales volume soared 52% in the quarter to around 3.171 million tons from 2.081 million tons in the prior-year quarter.
Revenues for the Industrial and Specialty Products division came in at $54.5 million in the quarter, up roughly 20% year over year. Overall sales volume rose 7% year over year to around 0.851 million tons.
Financials
U.S. Silica had $384.6 million in cash and cash equivalents at the end of 2017, down roughly 45.9% year over year.
Long-term debt dipped roughly 0.3% to $506.7 million and total debt was $511.2 million. Capital spending in the fourth quarter was $95.1 million.
Outlook
U.S. Silica expects its capital expenditures for 2018 to be in the range of $300-$350 million, mainly due to continued investments in Sandbox and completion of capacity expansion projects started last year.
For the first quarter, the company expects flat volumes and pricing in the Oil & Gas segment compared to fourth-quarter 2017. Per the company, severe winter weather has resulted in delay in completion activities and also caused disruptions in the customer supply chain.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. There have been five revisions lower for the current quarter.
Currently, SLCA has an average Growth Score of C, though it is lagging a lot on the momentum front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for value investors than growth investors.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of these revisions indicates a downward shift. Interestingly, SLCA has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is U.S. Silica (SLCA) Up 7.4% Since Its Last Earnings Report?
A month has gone by since the last earnings report for U.S. Silica Holdings, Inc. (SLCA - Free Report) . Shares have added about 7.4% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is SLCA due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
U.S. Silica’s Q4 Earnings Trail, Revenues Top Estimates
U.S. Silica recorded a profit of $72 million or 88 cents per share in the fourth quarter of 2017 against a net loss of $6.9 million or 9 cents in the year-ago quarter.
Barring one-time items, U.S. Silica’s adjusted earnings came in at 51 cents per share in the quarter, lagging the Zacks Consensus Estimate of 55 cents.
Revenues for the reported quarter were $360.6 million, a 98% year-over-year jump. It surpassed the Zacks Consensus Estimate of $359.2 million.
Full-Year 2017 Results
For 2017, U.S. Silica reported net income of $145.2 million or $1.77 per share against net loss of $41.1 million or 63 cents per share in 2016.
Total revenues jumped a whopping 122% to $1.24 billion.
Segment Highlights
Revenues for the Oil & Gas division were $306 million in the quarter, a roughly 123% year-over-year surge. Overall sales volume soared 52% in the quarter to around 3.171 million tons from 2.081 million tons in the prior-year quarter.
Revenues for the Industrial and Specialty Products division came in at $54.5 million in the quarter, up roughly 20% year over year. Overall sales volume rose 7% year over year to around 0.851 million tons.
Financials
U.S. Silica had $384.6 million in cash and cash equivalents at the end of 2017, down roughly 45.9% year over year.
Long-term debt dipped roughly 0.3% to $506.7 million and total debt was $511.2 million. Capital spending in the fourth quarter was $95.1 million.
Outlook
U.S. Silica expects its capital expenditures for 2018 to be in the range of $300-$350 million, mainly due to continued investments in Sandbox and completion of capacity expansion projects started last year.
For the first quarter, the company expects flat volumes and pricing in the Oil & Gas segment compared to fourth-quarter 2017. Per the company, severe winter weather has resulted in delay in completion activities and also caused disruptions in the customer supply chain.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. There have been five revisions lower for the current quarter.
U.S. Silica Holdings, Inc. Price and Consensus
U.S. Silica Holdings, Inc. Price and Consensus | U.S. Silica Holdings, Inc. Quote
VGM Scores
Currently, SLCA has an average Growth Score of C, though it is lagging a lot on the momentum front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for value investors than growth investors.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of these revisions indicates a downward shift. Interestingly, SLCA has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.