Carbo Ceramics down almost 20% following disappointing earnings report

CARBO Ceramics (CRR) declined sharply after the company last night reported Q4 net income of $33.1M, or $1.43 per diluted share, missing consensus estimates for EPS of $1.70. Revenues of $158.1M in Q4 also fell short of expectations, with consensus at $179.24M, according to Fact Set. Noting "challenges beyond typical seasonality," the company said the severe decline in natural gas prices during the quarter led E&Ps to reduce capital spending, leading to a sequential reduction of about 70% in its Haynesville proppant sales volumes. Also, logistical issues burdened its distribution network, the company said, and "the industry's response to the decline of activity in the Haynesville, reallocation of proppant supply and demand and adjustment to natural gas fundamentals will take some time to work out." Shares moved lower throughout the session, sliding $25.58, or 19.52%, to $105.45 in late afternoon trading.