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U.S. Silica Holdings (SLCA) to Up Cristobalite Products Prices

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U.S. Silica Holdings, Inc. SLCA recently announced that a part of its Industrial and Specialty Products business would raise prices for most of its non-contracted whole grain and ground cristobalite products.

These products are manufactured in its Millen, GA, Berkeley Springs, WV and Columbia, SC facilities and are used mainly in building products, foundry, plastics, and paints and coatings.

Price hikes will range up to 25%, depending on the product and grade. The price increases are effective for shipments starting Apr 1, 2022.

The company’s move to raise prices is driven by ongoing inflationary pressures around raw materials, packaging, logistics and maintenance expenses.

Shares of U.S. Silica have increased 7.4% in the past year against a 2% decline of the industry.

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The company, in its last earnings call, stated that its two business segments are well-positioned for sustainable, long-term growth in their respective markets in the first quarter and 2022. SLCA 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 new products under development, as well as pricing increases and surcharges.

In the Oil & Gas segment, the company expects a multi-year growth cycle. The strength in commodity prices, especially WTI crude oil prices along with increases in consumer spending support an active well completions environment in 2022.

The company intends to deliver a free positive cash flow in 2022 and deleverage its balance sheet. It forecasts capital expenditures in the range of $40-60 million.

U.S. Silica Holdings, Inc. Price and Consensus

U.S. Silica Holdings, Inc. Price and Consensus
U.S. Silica Holdings, Inc. Price and Consensus

U.S. Silica Holdings, Inc. price-consensus-chart | U.S. Silica Holdings, Inc. Quote

Zacks Rank & Key Picks

U.S. Silica currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Allegheny Technologies Incorporated ATI, Nutrien Ltd. NTR and AdvanSix Inc. ASIX.

Allegheny, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 661.5% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 45.6% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

Allegheny beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 21.2% over a year.

Nutrien, sporting a Zacks Rank #1, has a projected earnings growth rate of 70.1% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 16.9% upward in the past 60 days.

Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of roughly 60.3%, on average. NTR has rallied around 54.9% in a year.

AdvanSix has a projected earnings growth rate of 14.6% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 9.8% upward in the past 60 days.

AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being 23.6%. ASIX has surged 38.9% in a year. The company sports a Zacks Rank #1.


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