Yahoo Finance U.S. Silica (SLCA) Q4 Earnings Beat Estimates, Sales Miss
U.S. Silica Holdings, Inc. SLCA logged earnings of 37 cents per share in fourth-quarter 2023, down from 40 cents in the prior-year quarter.
Adjusted earnings in the reported quarter were 28 cents per share, down from 43 cents in the year-ago quarter. It topped the Zacks Consensus Estimate of 24 cents.
U.S. Silica recorded revenues of $336 million, down around 19% year over year. The metric missed the Zacks Consensus Estimate of $347.8 million.
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
Segmental Highlights
Revenues in the Oil & Gas division amounted to $200.6 million in the reported quarter, down 27% year over year. It was below our estimate of $230.1 million. Sales volume fell 19% year over year to 2.907 million tons. Oil & Gas contribution margin fell 26% year over year to $70.1 million. The figure lagged our estimate of $77.6 million.
Revenues in the Industrial & Specialty Products division were $135.5 million in the quarter, down 3% year over year. It was above our estimate of $126.3 million. Sales volume declined 8% year over year to 0.958 million tons. The segment’s contribution margin was $46.8 million in the quarter, up 17% year over year. It beat our estimate of $43.4 million.
FY23 Results
For full-year 2023, U.S. Silica recorded $1,552 million in revenues, up 2% year over year. It reported net income of $147 million or $1.87 per share for 2023.
Financials
At the end of the quarter, the company’s cash and cash equivalents were $245.7 million, down around 12.5% year over year. Long-term debt dropped nearly 21% year over year to $823.7 million.
The company generated $263.9 million in cash flow from operations during 2023.
Outlook
Per SLCA, the oil and gas sector is experiencing a multi-year growth phase. Favorable commodity prices and improved efficiencies in well completion pave the way for an active environment in the forthcoming years, with the company’s sand production capacity secured by strong contractual commitments for the current year.
U.S. Silica maintains its key emphasis on generating operational cash flow and declining leverage on the balance sheet. The company foresees significant operating cash flow in 2024, allocating around $60 million in capital expenditures for the year.
Price Performance
Shares of U.S. Silica are down 7.7% in the past year compared with a 5.2% fall of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
U.S. Silica currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Carpenter Technology Corporation CRS, sporting a Zacks Rank #1 (Strong Buy), Eldorado Gold Corporation EGO and Hawkins, Inc. HWKN, both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for CRS’ current fiscal year earnings is pegged at $3.97 per share, indicating a year-over-year surge of 248.3%. CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 14.3%. The company’s shares have moved up 28.8% in the past year.
Eldorado has a projected earnings growth rate of 1,040% for the current year. The Zacks Consensus Estimate for EGO’s current-year earnings has been revised upward by 10% in the past 60 days. EGO topped the consensus estimate in each of the last four quarters, with the average earnings surprise being 496%. The company’s shares have increased 7.5% in the past year.
The consensus estimate for HWKN’s current fiscal year earnings is pegged at $3.61 per share, indicating a year-over-year rise of 26%. The Zacks Consensus Estimate for HWKN’s current-year earnings has been revised upward by 4.3% in the past 30 days. HWKN beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 30.6%. The company’s shares have surged 64.3% in the past year.
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
Carpenter Technology Corporation (CRS) : Free Stock Analysis Report
U.S. Silica Holdings, Inc. (SLCA) : Free Stock Analysis Report
Eldorado Gold Corporation (EGO) : Free Stock Analysis Report
Hawkins, Inc. (HWKN) : Free Stock Analysis Report
