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Smart Sand (SND) Gears Up for Q3 Earnings: What's in Store?

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Smart Sand, Inc. SND is set to release third-quarter 2019 results on Nov 6, before the opening bell.

The company did not miss earnings estimates in the trailing four quarters, with the average positive surprise being 60.9%.

SMART SAND INC Price and EPS Surprise

SMART SAND INC Price and EPS Surprise

SMART SAND INC price-eps-surprise | SMART SAND INC Quote

Let’s see how things have shaped up for this announcement.

Which Way are Estimates Trending?

Let’s take a look at estimate revisions to get a clear picture of what analysts expect from the company’s upcoming earnings release.

The Zacks Consensus Estimate for third-quarter earnings has been unchanged at 36 cents in the past 30 days. The figure indicates a 20% year-over-year increase.

The Zacks Consensus Estimate for third-quarter revenues is pegged at $64.3 million, suggesting a rise of almost 2% from the year-ago reported figure.

Factors at Play

Demand for the Woodlands, TX-based frac sand provider’s services rose in second-quarter 2019 on market recovery. This trend is expected to have continued in the third quarter and positively impacted the company’s performance.

The Van Hook terminal, which came online in April 2018, enables it to provide one of the most cost-effective frac sand delivery options into the Bakken shale. This is likely to have been a tailwind for the company. With production rising in this shale play, Smart Sand is expected to have generated high sales in the third quarter. The sales growth is likely to have been further supported by increasing use of frac sand per well, as the wells are getting longer.

Given its centralized reserves, processing plants and rail facilities, the company is expected to have significantly saved costs of trucking high-quality Northern White frac sand in the quarter to be reported. This is likely to have in turn boosted Smart Sand’s bottom line in the July-September period.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Smart Sand this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here as you will see below.

Earnings ESP: Earnings ESP for the company is 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are both pegged at 36 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.  

Zacks Rank: Smart Sand currently carries a Zacks Rank #3.

Q2 Earnings Highlight

In the last reported quarter, the company reported earnings per share of 36 cents, significantly beating the Zacks Consensus Estimate of 15 cents and rising from the year-ago quarter’s 25 cents, primarily due to higher shortfall revenues and increased in-basin sales.

Energy Stocks With Favorable Combination

While earnings beat looks uncertain for Smart Sand, here are some companies from the energy space that you may want to consider on the basis of our model, which shows that these have the right combination of elements to deliver an earnings beat in the upcoming quarterly reports:

Marathon Oil Corporation MRO has an Earnings ESP of +4.17% and a Zacks Rank of 3. The company is slated to announce third-quarter 2019 earnings on Nov 6. You can see the complete list of today’s Zacks #1 Rank stocks here.

Rattler Midstream LP (RTLR - Free Report) has an Earnings ESP of +8.41% and a Zacks Rank of 3. The company is slated to announce third-quarter 2019 earnings on Nov 5.

Plains All American Pipeline, L.P. PAA has an Earnings ESP of +0.43% and is a #3 Ranked player. The company is scheduled to release third-quarter 2019 earnings on Nov 5.

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