U.S. Silica Holdings, Inc. SLCA recorded a profit of $17.6 million or 22 cents per share in the second quarter of 2018 compared with $29.5 million or 36 cents in the year-ago quarter.
Barring one-time items, adjusted earnings came in at 64 cents per share, which missed the Zacks Consensus Estimate of 68 cents.
U.S. Silica reported revenues of $427.4 million, up around 47.2% year over year. However, the figure missed the Zacks Consensus Estimate of $440.8 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. Quote
Segment Highlights
Revenues in the Oil & Gas division were $324.1 million in the quarter, up about 38% year over year. Overall sales volume rose 26% year over year to around 3.465 million tons.
Revenues in the Industrial and Specialty Products (ISP) division came in at $103.4 million, up 86% year over year. Overall sales volume rose 15% to around 1.024 million tons.
Financials
U.S. Silica had $322.4 million in cash and cash equivalents at the end of the second quarter, down roughly 85.6% year over year.
Long-term debt rose to $1,253.4 million from $506.3 million in the prior-year quarter. Total debt was $1,267.4 million. Capital spending in the quarter was $86.9 million.
Outlook
U.S. Silica expects capital expenditures for 2018 to be roughly $350 million.
For the third quarter, the company expects volumes in the Oil & Gas segment to rise in the range of 20-25%, as the is ramping up new capacity in West Texas and also bringing Brownfield expansion projects online.
U.S. Silica expects strong performance and improved volumes in Sandbox in the third quarter as it continues to add crews.
For the ISP unit, the company expects sequential increases in pricing and margins on the back of strategic price increases implemented during second quarter and a full quarter of results from EP Minerals.
Price Performance
U.S. Silica’s shares have lost 12.7% over the past three months against 1.8% rise of the industry.
Zacks Rank & Stocks to Consider
U.S. Silica currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the basic materials space are KMG Chemicals, Inc KMG, Ingevity Corporation NGVT and Celanese Corporation CE, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
KMG Chemicals has an expected long-term earnings growth rate of 28.5%. Its shares have returned 45.5% in a year.
Ingevity has an expected long-term earnings growth rate of 12%. Its shares have rallied 68.6% in a year.
Celanese has an expected long-term earnings growth rate of 10%. Its shares have gained 22% in a year.
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