U.S. Markets close in 4 hrs 25 mins
  • S&P 500

    4,143.98
    +2.39 (+0.06%)
     
  • Dow 30

    33,899.78
    +222.51 (+0.66%)
     
  • Nasdaq

    13,942.34
    -53.76 (-0.38%)
     
  • Russell 2000

    2,269.08
    +40.16 (+1.80%)
     
  • Crude Oil

    62.76
    +2.58 (+4.29%)
     
  • Gold

    1,734.80
    -12.80 (-0.73%)
     
  • Silver

    25.37
    -0.06 (-0.22%)
     
  • EUR/USD

    1.1976
    +0.0021 (+0.1796%)
     
  • 10-Yr Bond

    1.6480
    +0.0250 (+1.54%)
     
  • Vix

    16.92
    +0.27 (+1.62%)
     
  • GBP/USD

    1.3799
    +0.0046 (+0.3381%)
     
  • USD/JPY

    108.9870
    -0.0610 (-0.0559%)
     
  • BTC-USD

    62,647.88
    -229.27 (-0.36%)
     
  • CMC Crypto 200

    1,348.32
    -27.45 (-2.00%)
     
  • FTSE 100

    6,937.79
    +47.30 (+0.69%)
     
  • Nikkei 225

    29,620.99
    -130.62 (-0.44%)
     

U.S. Silica (SLCA) Q4 Earnings & Revenues Beat Estimates

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Zacks Equity Research
·4 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

U.S. Silica Holdings, Inc. SLCA reported a net profit of $4.6 million or 6 cents per share in fourth-quarter 2020 against net loss of $292.9 million or $3.99 per share in the year-ago quarter.

Barring one-time items, adjusted loss per share was 26 cents, which was narrower than the Zacks Consensus Estimate of a loss of 35 cents.

U.S. Silica generated revenues of $227.3 million, down 33% year over year. However, the figure surpassed the Zacks Consensus Estimate of $194.6 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 $120.3 million in the fourth quarter, down 49% year over year and up 81% sequentially. Overall sales volume fell 43% year over year to 1.901 million tons. Oil & Gas contribution margin increased 64% sequentially and declined 24% year over year to $51.5 million or $27.10 per ton.

Revenues in the Industrial & Specialty Products division amounted to $106.9 million in the fourth quarter, up 2% year over year. Overall sales volume increased 10% year over year to 0.926 million tons. The segment’s contribution margin was $38.4 million or $41.47 per ton in the quarter, down 9% sequentially and down 2% year over year.

FY20 Results

Loss (as reported) for full-year 2020 was $1.55 per share compared with $4.49 per share a year ago. Net sales declined 43% year over year to $845.9 million.

Financials

At the end of the year, the company’s cash and cash equivalents were $150.9 million, down 18.7% year over year. Long-term debt was $1,197.7 million, down 1.3% year over year.

Outlook

For 2021 and beyond, U.S. Silica predicts a sustainable long-term growth by serving key industries like food and beverage, production, housing automotive, glass manufacturing, biopharma and energy. It is focused on prioritizing free cash flow, repositioning its Oil & Gas segment and growth of its Industrial and Specialty Products segment.

The company plans to deliver positive cash flow in 2021 and deleverage its balance sheet, keeping $30-40 million of capital expenditures within operating cash flow.

The Industrial & Specialty Products segment started 2021 on a positive note and the company expects growth to outpace U.S. GDP. U.S. Silica has taken initiatives to reduce costs in the Oil & Gas segment. It also expects a strong recovery in energy sector proppant and last mile delivery demand in the first half of 2021.

Price Performance

Shares of U.S. Silica have surged 178.5% in the past year compared with 63.1% 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 Fortescue Metals Group Limited FSUGY, BHP Group BHP and Impala Platinum Holdings Limited IMPUY.

Fortescue has a projected earnings growth rate of 95.4% for the current fiscal. The company’s shares have surged around 183.6% 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.

BHP has an expected earnings growth rate of 69.2% for the current fiscal. The company’s shares have gained around 71.5% in the past year. It currently sports a Zacks Rank #1.

Impala has an expected earnings growth rate of 195.9% for the current fiscal. The company’s shares have rallied around 95.2% in the past year. It currently sports a Zacks Rank #1.

+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities

In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.

Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.

Click here to download this report FREE >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report

Impala Platinum Holdings Ltd. (IMPUY) : Free Stock Analysis Report

U.S. Silica Holdings, Inc. (SLCA) : Free Stock Analysis Report

Fortescue Metals Group Ltd. (FSUGY) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research