uploads/2018/06/CRR.jpg

Carbo Ceramics’ Revenue Growth among the Industry’s Highest

By

Updated

Carbo Ceramics’ revenue trend

Carbo Ceramics (CRR) comes in third in the ranking of our top five revenue growth companies in the OFS (oilfield equipment and services) industry. In the first quarter, Carbo Ceramics’ revenues increased 42% YoY (year-over-year). From Q4 2017 to Q1 2018, its revenues decreased 18%.

The higher YoY first-quarter revenues were due to an increase in hydraulic fracturing sand sales and an increase in ceramic media sales to industrial markets. CRR’s sales volume in North America increased YoY due to higher sales of base ceramic products. Its environmental products and services segment revenues also increased in the first quarter.

Article continues below advertisement

CRR’s revenues versus estimates

For the second quarter, Wall Street analysts expect to see 19.8% sequential revenue growth for CRR. YoY, its revenues could increase 36% in the second quarter. From Q2 2016 to Q1 2018, its reported revenues beat analysts’ average estimates by 0.5%.

Why CRR’s second-quarter revenues could increase

Carbo Ceramics expects all areas of its business to improve in the second quarter. In 2018, E&P (exploration and production) operators have renewed their focus on increasing EURs (estimated ultimate recovery) and improving overall returns.

CRR, which provides hydraulic fracturing technology, including solutions to enhance production that lowers the total cost per barrel of oil equivalent, could benefit from higher E&P activities. It’s gaining new clientele in several new industrial sectors, including the foundry and grinding sectors, which could also result in higher revenues.

Expected growth rate for the largest market cap OFS peers

For the second quarter, analysts expect Schlumberger (SLB), the largest market cap OFS company, to register 6.1% revenue growth sequentially. Halliburton (HAL), the second-largest OFS company by market cap, is expected to grow its revenues 6.4%, while Baker Hughes, a GE Company (BHGE) could see 3.1% revenue growth in the second quarter, according to Wall Street analysts.

Next, we’ll look at Oil States International’s (OIS) past revenue trend and why sell-side analysts expect its revenue to grow in the second quarter.

Advertisement

More From Market Realist