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U.S. Silica (SLCA) Earnings & Sales Beat Estimates in Q1

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U.S. Silica Holdings, Inc. SLCA reported a net loss of $20.8 million or 28 cents per share in first-quarter 2021, narrower than a net loss of $72.3 million or 98 cents per share in the year-ago quarter.

Barring one-time items, adjusted loss per share was 27 cents that was narrower than the Zacks Consensus Estimate of a loss of 30 cents.

U.S. Silica generated revenues of $234.4 million, down 13% year over year. However, the figure surpassed the Zacks Consensus Estimate of $216.2 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. Price, Consensus and EPS Surprise

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

Segment Highlights

Revenues in the Oil & Gas division amounted to $121.7 million in the first quarter, down 22% year over year and remained flat sequentially. Overall sales volume increased 36% year over year to 2.577 million tons. Oil & Gas contribution margin fell 58% sequentially and declined 35% year over year to $21.5 million or $8.36 per ton.

Revenues in the Industrial & Specialty Products division amounted to $112.7 million in the first quarter, up 5% year over year. Overall sales volume increased 6% year over year to 0.984 million tons. The segment’s contribution margin was $40 million or $40.69 per ton in the quarter, up 4% sequentially and down 8% year over year.

Financials

At the end of the quarter, the company’s cash and cash equivalents were $154.4 million, up 2.3% sequentially. Long-term debt remained flat sequentially at $1,196.6 million.

Outlook

For 2021 and beyond, U.S. Silica predicts a sustainable long-term growth. It is focused on prioritizing free cash flow, repositioning its Oil & Gas segment and expanding the Industrial and Specialty Products segment.

The company expects The Industrial & Specialty Products segment growth to outpace U.S. GDP. The company expects contribution margin of the segment to increase 5-10% sequentially in the second quarter.

In the Oil & Gas segment, the company expects a strong energy recovery as economic activity rebounds and gains momentum. For the second quarter, contribution margin is projected to increase 30-35%.

The company plans to deliver positive cash flow in 2021 and deleverage its balance sheet.

Price Performance

Shares of U.S. Silica have rallied 323.3% in the past year versus 59.6% rise of the industry.

Zacks Rank & Other Key Picks

U.S. Silica currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the basic materials space are Dow Inc. DOW, Nucor Corporation NUE and Impala Platinum Holdings Limited IMPUY.

Dow has a projected earnings growth rate of roughly 261.5% for the current year. The company’s shares have surged 93.5% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Nucor has an expected earnings growth rate of around 228.4% for the current year. The company’s shares have gained 110.3% in the past year. It currently sports a Zacks Rank #1.

Impala has an expected earnings growth rate of 197.6% for the current fiscal. The company’s shares have skyrocketed 242.5% in the past year. It currently flaunts a Zacks Rank #1.

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