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U.S. Silica's (SLCA) Q2 Earnings and Revenues Beat Estimates
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U.S. Silica Holdings, Inc. (SLCA - Free Report) reported a net income of $26 million or 34 cents per share in second-quarter 2021 against a net loss of $32.4 million or 44 cents in the year-ago quarter.
Barring one-time items, adjusted loss per share was 12 cents, narrower than the Zacks Consensus Estimate of a loss of 17 cents.
U.S. Silica generated revenues of $317.3 million, increasing 84% year over year and 35% sequentially. The figure also surpassed the Zacks Consensus Estimate of $266.4 million. The upside was driven by strong performance in the Industrial & Specialty Products segment and volume growth in both segments, led by market revival and favorable commodity pricing. This was partly offset by facility closure costs as well as costs associated with delayed winter weather.
U.S. Silica Holdings, Inc. Price, Consensus and EPS Surprise
Revenues in the Oil & Gas division were $193.3 million in the second quarter, shooting up 167% year over year and 59% sequentially. Overall sales volume skyrocketed 172% year over year to 3.02 million tons. Oil & Gas contribution margin shot up 216% year over year to $82.7 million or $27.35 per ton and increased 285% sequentially. This segment benefited from strong commodity prices.
Revenues in the Industrial & Specialty Products division amounted to $124 million in the second quarter, up 24% year over year. Overall sales volume increased 36% year over year to 1.08 million tons. The segment’s contribution margin was $45.9 million or $42.5 per ton in the quarter, up 15% sequentially and 31% year over year. Second-quarter revenues for this segment grew at a rate surpassing GDP growth.
Financials
At the end of the quarter, the company’s cash and cash equivalents were $212.7 million, up 34% year over year. Long-term debt was $1,196.4 million, down 1.2% year over year.
Outlook
For second-half 2021 and beyond, U.S. Silica predicts sustainable long-term growth backed by a strong portfolio of industrial and specialty products and a pipeline of new products. It is focused on generating positive free cash flow and reducing net debt by the end of the year.
The company expects the Industrial & Specialty Products segment strength to continue to strengthen and the Oil & Gas segment to rebalance from completion of drilling activities. The Oil & Gas unit is progressing through a transitional year as economic activities rebound and gain momentum, U.S. Silica noted.
Price Performance
Shares of U.S. Silica have jumped 196.1% in the past year, outperforming the industry’s growth of 33.2%.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
Currently, U.S. Silica carries a Zacks Rank #2 (Buy).
Image: Bigstock
U.S. Silica's (SLCA) Q2 Earnings and Revenues Beat Estimates
U.S. Silica Holdings, Inc. (SLCA - Free Report) reported a net income of $26 million or 34 cents per share in second-quarter 2021 against a net loss of $32.4 million or 44 cents in the year-ago quarter.
Barring one-time items, adjusted loss per share was 12 cents, narrower than the Zacks Consensus Estimate of a loss of 17 cents.
U.S. Silica generated revenues of $317.3 million, increasing 84% year over year and 35% sequentially. The figure also surpassed the Zacks Consensus Estimate of $266.4 million. The upside was driven by strong performance in the Industrial & Specialty Products segment and volume growth in both segments, led by market revival and favorable commodity pricing. This was partly offset by facility closure costs as well as costs associated with delayed winter weather.
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 were $193.3 million in the second quarter, shooting up 167% year over year and 59% sequentially. Overall sales volume skyrocketed 172% year over year to 3.02 million tons. Oil & Gas contribution margin shot up 216% year over year to $82.7 million or $27.35 per ton and increased 285% sequentially. This segment benefited from strong commodity prices.
Revenues in the Industrial & Specialty Products division amounted to $124 million in the second quarter, up 24% year over year. Overall sales volume increased 36% year over year to 1.08 million tons. The segment’s contribution margin was $45.9 million or $42.5 per ton in the quarter, up 15% sequentially and 31% year over year. Second-quarter revenues for this segment grew at a rate surpassing GDP growth.
Financials
At the end of the quarter, the company’s cash and cash equivalents were $212.7 million, up 34% year over year. Long-term debt was $1,196.4 million, down 1.2% year over year.
Outlook
For second-half 2021 and beyond, U.S. Silica predicts sustainable long-term growth backed by a strong portfolio of industrial and specialty products and a pipeline of new products. It is focused on generating positive free cash flow and reducing net debt by the end of the year.
The company expects the Industrial & Specialty Products segment strength to continue to strengthen and the Oil & Gas segment to rebalance from completion of drilling activities. The Oil & Gas unit is progressing through a transitional year as economic activities rebound and gain momentum, U.S. Silica noted.
Price Performance
Shares of U.S. Silica have jumped 196.1% in the past year, outperforming the industry’s growth of 33.2%.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
Currently, U.S. Silica carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the basic materials space include Orion Engineered Carbons S.A (OEC - Free Report) , LyondellBasell Industries N.V. (LYB - Free Report) and Cabot Corporation (CBT - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Orion has a projected earnings growth rate of 79.8% for the current year. The company’s shares have grown 74% over a year.
LyondellBasell has a projected earnings growth rate of 222.6% for the current year. The company’s shares have risen 54% over a year.
Cabot has a projected earnings growth rate of 137.5% for the current year. The company’s shares have rallied 48.6% over a year.