Fairmount Santrol Holdings’ Returns after 2Q17



Fairmount Santrol Holdings’ stock price reaction

Fairmount Santrol Holdings (FMSA) released its financial results for 2Q17 on August 3, 2017. Its stock price reacted mildly negatively and fell 1% to $2.65 on August 3—compared to the previous day’s closing price.

Superior Energy Services (SPN), Fairmount Santrol Holdings’ peer in the oilfield equipment and services industry, rose 3.3% following the release of its financial information for 2Q17 on July 25. Baker Hughes, a GE company (BHGE), rose 2.6% on July 28—the day its 2Q17 financial results were announced. Read BHGE, PTEN, and BAS: Did 2Q17 Results Impress Investors? to learn more.

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Fairmount Santrol’s returns compared to the industry

In the past year, Fairmount Santrol Holdings fell ~62% as of August 3, 2017. During this period, the company underperformed the VanEck Vectors Oil Services ETF (OIH), which produced -12% returns. The Energy Select Sector SPDR ETF (XLE) has produced -2% returns. Fairmount Santrol Holdings underperformed the SPDR S&P 500 ETF (SPY), which produced 14% returns during the same period. The Dow Jones Industrial Average (DJIA-INDEX) rose 20% in the past year.

West Texas Intermediate crude oil prices rose ~20% in the past year. For the latest on crude oil prices, read Gasoline Demand and Crude Oil Inventories Drive Oil Futures.

What could drive Fairmount Santrol Holdings in 2017?

On Fairmount Santrol Holdings’ 2017 outlook and strategies, Jenniffer Deckard, Fairmount Santrol’s CEO, said, “As we look to the remainder of 2017 and beyond, we expect proppant demand to grow across all basins, with a continued broad mix of product and grade distribution. Our strategy to expand our industry-leading product portfolio, our production capacity, and our comprehensive logistics network will keep us in an excellent position to meet the diverse needs of our customers and to benefit from the continued changes in market demand.”

Next, we’ll discuss Wall Street analysts’ forecasts for Fairmount Santrol Holdings.


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