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Will Sandbox Boost U.S. Silica's (SLCA) Earnings in Q2?
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U.S. Silica Holdings, Inc. (SLCA - Free Report) is set to release second-quarter 2018 results on Jul 31, before the opening bell.
In the last reported quarter, the company delivered a positive earnings surprise of 20% by posting adjusted earnings of 54 cents per share, which topped the Zacks Consensus Estimate of 45 cents.
Revenues surged 51% on a year-over-year basis to $369.3 million, but lagged the Zacks Consensus Estimate of $373 million.
Notably, U.S. Silica beat the Zacks Consensus Estimate in three of the trailing four quarters, with an average positive surprise of 5.9%.
Can the company surprise investors again or is it heading for a possible pullback? Let’s see how things are shaping up for this announcement.
During its first-quarter call, the company stated that it expects volumes in the Oil & Gas segment to rise in the range of 10-15% for the second quarter. Moreover, the company expects spot pricing to continue to increase in the quarter at mid-single digit clips. It also expects improved pricing and volumes for Sandbox in the second quarter.
For the Industrial and Specialty Products (ISP) unit, the company expects second-quarter results to be bolstered by higher volumes and margins, which is likely to be driven by a favorable product mix and positive seasonality.
U.S. Silica’s total revenues for the second quarter are projected to increase roughly 18.4% sequentially, as the Zacks Consensus Estimate for total revenues is currently pegged at $437 million. Notably, the projected revenues figure represents a roughly 50.7% jump from the prior-year quarter’s reported figure of $290 million.
Revenues for the company’s Oil & Gas division for the second quarter are projected to increase roughly 12.1% sequentially as the Zacks Consensus Estimate is pegged at $351 million. In the first quarter, the segment’s reported sales rallied 62% year over year while the overall sales volume soared 28% to around 3.3 million tons.
The Zacks Consensus Estimate for ISP division’s revenues is projected at $82 million for the second quarter, reflecting an estimated 46.4% increase on a sequential basis. The segment’s revenues jumped around 9% year over year in first quarter while overall sales volume inched up 2% to around 0.9 million tons.
U.S. Silica’s shares have lost 15.6% in the past three months against the 2.7% rise of the industry.
Earnings Whispers
Our proven model does not show that U.S. Silica is likely to beat estimates this quarter. That is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below:
Earnings ESP: Earnings ESP for U.S. Silica for the second quarter is -4.92%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are currently pegged at 66 cents and 69 cents, respectively. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: U.S. Silica currently carries a Zacks Rank #3, which when combined with a negative ESP, makes surprise prediction difficult.
Note that we caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks Poised to Beat Estimates
Here are some companies in the basic materials space you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
The Chemours Company (CC - Free Report) has an Earnings ESP of +2.38% and carries a Zacks Rank #3.
DowDuPont Inc. has an Earnings ESP of +0.26% and carries a Zacks Rank #3.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Image: Bigstock
Will Sandbox Boost U.S. Silica's (SLCA) Earnings in Q2?
U.S. Silica Holdings, Inc. (SLCA - Free Report) is set to release second-quarter 2018 results on Jul 31, before the opening bell.
In the last reported quarter, the company delivered a positive earnings surprise of 20% by posting adjusted earnings of 54 cents per share, which topped the Zacks Consensus Estimate of 45 cents.
Revenues surged 51% on a year-over-year basis to $369.3 million, but lagged the Zacks Consensus Estimate of $373 million.
Notably, U.S. Silica beat the Zacks Consensus Estimate in three of the trailing four quarters, with an average positive surprise of 5.9%.
Can the company surprise investors again or is it heading for a possible pullback? Let’s see how things are shaping up for this announcement.
U.S. Silica Holdings, Inc. Price and EPS Surprise
U.S. Silica Holdings, Inc. Price and EPS Surprise | U.S. Silica Holdings, Inc. Quote
Factors at Play
During its first-quarter call, the company stated that it expects volumes in the Oil & Gas segment to rise in the range of 10-15% for the second quarter. Moreover, the company expects spot pricing to continue to increase in the quarter at mid-single digit clips. It also expects improved pricing and volumes for Sandbox in the second quarter.
For the Industrial and Specialty Products (ISP) unit, the company expects second-quarter results to be bolstered by higher volumes and margins, which is likely to be driven by a favorable product mix and positive seasonality.
U.S. Silica’s total revenues for the second quarter are projected to increase roughly 18.4% sequentially, as the Zacks Consensus Estimate for total revenues is currently pegged at $437 million. Notably, the projected revenues figure represents a roughly 50.7% jump from the prior-year quarter’s reported figure of $290 million.
Revenues for the company’s Oil & Gas division for the second quarter are projected to increase roughly 12.1% sequentially as the Zacks Consensus Estimate is pegged at $351 million. In the first quarter, the segment’s reported sales rallied 62% year over year while the overall sales volume soared 28% to around 3.3 million tons.
The Zacks Consensus Estimate for ISP division’s revenues is projected at $82 million for the second quarter, reflecting an estimated 46.4% increase on a sequential basis. The segment’s revenues jumped around 9% year over year in first quarter while overall sales volume inched up 2% to around 0.9 million tons.
U.S. Silica’s shares have lost 15.6% in the past three months against the 2.7% rise of the industry.
Earnings Whispers
Our proven model does not show that U.S. Silica is likely to beat estimates this quarter. That is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below:
Earnings ESP: Earnings ESP for U.S. Silica for the second quarter is -4.92%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are currently pegged at 66 cents and 69 cents, respectively. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: U.S. Silica currently carries a Zacks Rank #3, which when combined with a negative ESP, makes surprise prediction difficult.
Note that we caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks Poised to Beat Estimates
Here are some companies in the basic materials space you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
CF Industries Holdings, Inc. (CF - Free Report) has an Earnings ESP of +8.33% and holds a Zacks Rank #3. You can see the complete list of today’s Zacks #1Rank (Strong Buy) stocks here.
The Chemours Company (CC - Free Report) has an Earnings ESP of +2.38% and carries a Zacks Rank #3.
DowDuPont Inc. has an Earnings ESP of +0.26% and carries a Zacks Rank #3.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>