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Emerge Energy Services (EMES) Earnings & Sales Top in Q3

Zacks Equity Research

Have you been eager to see how fracking sand player Emerge Energy Services L.P. EMES performed in Q3 in comparison with the market expectations? Let’s quickly scan through the key facts from this Southlake, TX-based partnership’s earnings release this morning:

About Emerge Energy Services: It is an energy services firm, engages mainly in mining, producing and silica sand distribution businesses.

Zacks Rank & Surprise History: Currently, Emerge Energy Services has a Zacks Rank #4 (Sell) but that could change following its third quarter 2017 earnings report which has just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Coming to earnings surprise history, the partnership has a dismal record: its underperformed estimates in each of the last four quarters with an average miss of 19.30%.

Emerge Energy Services LP Price and EPS Surprise

Emerge Energy Services LP Price and EPS Surprise | Emerge Energy Services LP Quote

We have highlighted some of the key details from the just-released announcement below:

Earnings Higher than Expected: Emerge Energy Services swung back to earnings after an extended period of quarterly losses. The partnership reported earnings per unit from continuing operations of 18 cents, as against the Zacks Consensus Estimate of a loss of 7 cents.

Revenue Came in Higher than Expected: Revenues of $103.2 million were above the Zacks Consensus Estimate of $99 million.

Key Stats: Emerge Energy Services has classified its fuel business as discontinued operations as the partnership divested the unit. As such, the entire earnings of the partnership are now from the sand segment, which incurred adjusted EBITDA from continuing operation of $18.7 million. In the year-ago quarter, the company had generated a loss of $8.1 million. Better results were driven by increase in volumes sold, higher prices, and lower production costs on a per-ton basis. Total volumes sold jumped by 200% year-over-year to 1,480,000 tons.

The partnership stated that it will not pay a third-quarter distribution to its common unitholders under its amended credit agreement.

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