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U.S. Silica (SLCA) Q1 Earnings and Revenues Beat Estimates
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U.S. Silica Holdings, Inc. (SLCA - Free Report) recorded first-quarter 2023 earnings of 57 cents per share against a loss of 11 cents in the prior-year quarter.
Adjusted earnings in the reported quarter were 64 cents per share against a loss of 2 cents in the year-ago quarter. It surpassed the Zacks Consensus Estimate of 46 cents.
U.S. Silica generated revenues of $442.2 million, up around 45% year over year, surpassing Zacks Consensus Estimate of $432.2 million. The company benefited from strong demand and improved pricing in the Oil and Gas segment.
U.S. Silica Holdings, Inc. Price, Consensus and EPS Surprise
Revenues in the Oil & Gas division amounted to $300 million in the reported quarter, up 70% year over year and 10% sequentially. Sales volume increased 28% year over year to 3.921 million tons. The Oil & Gas contribution margin rose 16% sequentially and 146% year over year to $109.9 million or $28.03 per ton.
Revenues in the Industrial & Specialty Products division amounted to $142.2 million in the quarter, up 11% year over year and down 2% sequentially. Sales volume decreased 6% year over year to 1.013 million tons. The segment’s contribution margin was $42.9 million or $42.38 per ton in the quarter, down 7% sequentially and up 13% year over year.
Financials
At the end of the quarter, the company’s cash and cash equivalents were $139.5 million, down 41.8% year over year. Long-term debt was $897 million, down 24.7% year over year.
Outlook
For the second quarter of 2023, U.S. Silica noted that its two business segments are well-placed in their respective markets. It has a strong portfolio of Industrial and Specialty Products that serve several essential, high-growth and attractive end markets, backed by a strong pipeline of products under development. It also expects growth in its underlying base business, along with pricing hikes and surcharges, to continue combating inflationary impacts.
In the Oil & Gas segment, the company expects a multi-year growth cycle. The strength in WTI crude oil prices supports an active well completion environment in 2023.
The company is focused on delivering a free cash flow in 2023, deleveraging its balance sheet. It plans to generate significant operating cash flow in the year as well. It forecasts capital expenditure of $50-$60 million for the year.
Price Performance
Shares of U.S. Silica have lost 36.7% in the past year compared with a 20.1% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
SLCA currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the Basic Materials space are Steel Dynamics, Inc. (STLD - Free Report) , Linde plc (LIN - Free Report) and PPG Industries, Inc. (PPG - Free Report)
Steel Dynamics currently carries a Zacks Rank #2 (Buy). Shares of STLD have gained 19.4% in the past year. It beat the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 10.7% on average. You can seethe complete list of today’s Zacks #1 Rank stocks here.
Linde, currently carrying a Zacks Rank #2, has a projected earnings growth rate of 9.1% for the current year. The Zacks Consensus Estimate for LIN’s current-year earnings has been revised 0.97% upward in the past 60 days. It has a trailing four-quarter earnings surprise of 5.9%, on average. The stock has gained 17.9% over the past year.
PPG Industries currently carries a Zacks Rank #2 and has a projected earnings growth rate of 20.2% for the current year. Shares of PPG have gained 4.8% in the past year. It delivered a trailing four-quarter earnings surprise of 6.8%, on average.
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U.S. Silica (SLCA) Q1 Earnings and Revenues Beat Estimates
U.S. Silica Holdings, Inc. (SLCA - Free Report) recorded first-quarter 2023 earnings of 57 cents per share against a loss of 11 cents in the prior-year quarter.
Adjusted earnings in the reported quarter were 64 cents per share against a loss of 2 cents in the year-ago quarter. It surpassed the Zacks Consensus Estimate of 46 cents.
U.S. Silica generated revenues of $442.2 million, up around 45% year over year, surpassing Zacks Consensus Estimate of $432.2 million. The company benefited from strong demand and improved pricing in the Oil and Gas segment.
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
Segmental Highlights
Revenues in the Oil & Gas division amounted to $300 million in the reported quarter, up 70% year over year and 10% sequentially. Sales volume increased 28% year over year to 3.921 million tons. The Oil & Gas contribution margin rose 16% sequentially and 146% year over year to $109.9 million or $28.03 per ton.
Revenues in the Industrial & Specialty Products division amounted to $142.2 million in the quarter, up 11% year over year and down 2% sequentially. Sales volume decreased 6% year over year to 1.013 million tons. The segment’s contribution margin was $42.9 million or $42.38 per ton in the quarter, down 7% sequentially and up 13% year over year.
Financials
At the end of the quarter, the company’s cash and cash equivalents were $139.5 million, down 41.8% year over year. Long-term debt was $897 million, down 24.7% year over year.
Outlook
For the second quarter of 2023, U.S. Silica noted that its two business segments are well-placed in their respective markets. It has a strong portfolio of Industrial and Specialty Products that serve several essential, high-growth and attractive end markets, backed by a strong pipeline of products under development. It also expects growth in its underlying base business, along with pricing hikes and surcharges, to continue combating inflationary impacts.
In the Oil & Gas segment, the company expects a multi-year growth cycle. The strength in WTI crude oil prices supports an active well completion environment in 2023.
The company is focused on delivering a free cash flow in 2023, deleveraging its balance sheet. It plans to generate significant operating cash flow in the year as well. It forecasts capital expenditure of $50-$60 million for the year.
Price Performance
Shares of U.S. Silica have lost 36.7% in the past year compared with a 20.1% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
SLCA currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the Basic Materials space are Steel Dynamics, Inc. (STLD - Free Report) , Linde plc (LIN - Free Report) and PPG Industries, Inc. (PPG - Free Report)
Steel Dynamics currently carries a Zacks Rank #2 (Buy). Shares of STLD have gained 19.4% in the past year. It beat the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 10.7% on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Linde, currently carrying a Zacks Rank #2, has a projected earnings growth rate of 9.1% for the current year. The Zacks Consensus Estimate for LIN’s current-year earnings has been revised 0.97% upward in the past 60 days. It has a trailing four-quarter earnings surprise of 5.9%, on average. The stock has gained 17.9% over the past year.
PPG Industries currently carries a Zacks Rank #2 and has a projected earnings growth rate of 20.2% for the current year. Shares of PPG have gained 4.8% in the past year. It delivered a trailing four-quarter earnings surprise of 6.8%, on average.