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U.S. Silica (SLCA) Earnings & Sales Beat Estimates in Q1

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U.S. Silica Holdings, Inc. (SLCA - Free Report) reported a net loss of $20.8 million or 28 cents per share in first-quarter 2021, narrower than a net loss of $72.3 million or 98 cents per share in the year-ago quarter.

Barring one-time items, adjusted loss per share was 27 cents that was narrower than the Zacks Consensus Estimate of a loss of 30 cents.

U.S. Silica generated revenues of $234.4 million, down 13% year over year. However, the figure surpassed the Zacks Consensus Estimate of $216.2 million.

U.S. Silica Holdings, Inc. Price, Consensus and EPS Surprise

 

U.S. Silica Holdings, Inc. Price, Consensus and EPS Surprise

U.S. Silica Holdings, Inc. price-consensus-eps-surprise-chart | U.S. Silica Holdings, Inc. Quote

 

Segment Highlights

Revenues in the Oil & Gas division amounted to $121.7 million in the first quarter, down 22% year over year and remained flat sequentially. Overall sales volume increased 36% year over year to 2.577 million tons. Oil & Gas contribution margin fell 58% sequentially and declined 35% year over year to $21.5 million or $8.36 per ton.

Revenues in the Industrial & Specialty Products division amounted to $112.7 million in the first quarter, up 5% year over year. Overall sales volume increased 6% year over year to 0.984 million tons. The segment’s contribution margin was $40 million or $40.69 per ton in the quarter, up 4% sequentially and down 8% year over year.

Financials

At the end of the quarter, the company’s cash and cash equivalents were $154.4 million, up 2.3% sequentially. Long-term debt remained flat sequentially at $1,196.6 million.

Outlook

For 2021 and beyond, U.S. Silica predicts a sustainable long-term growth. It is focused on prioritizing free cash flow, repositioning its Oil & Gas segment and expanding the Industrial and Specialty Products segment.

The company expects The Industrial & Specialty Products segment growth to outpace U.S. GDP. The company expects contribution margin of the segment to increase 5-10% sequentially in the second quarter.

In the Oil & Gas segment, the company expects a strong energy recovery as economic activity rebounds and gains momentum. For the second quarter, contribution margin is projected to increase 30-35%.

The company plans to deliver positive cash flow in 2021 and deleverage its balance sheet.

Price Performance

Shares of U.S. Silica have rallied 323.3% in the past year versus 59.6% rise of the industry.

Zacks Rank & Other Key Picks

U.S. Silica currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the basic materials space are Dow Inc. DOW, Nucor Corporation NUE and Impala Platinum Holdings Limited IMPUY.

Dow has a projected earnings growth rate of roughly 261.5% for the current year. The company’s shares have surged 93.5% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Nucor has an expected earnings growth rate of around 228.4% for the current year. The company’s shares have gained 110.3% in the past year. It currently sports a Zacks Rank #1.

Impala has an expected earnings growth rate of 197.6% for the current fiscal. The company’s shares have skyrocketed 242.5% in the past year. It currently flaunts a Zacks Rank #1.

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