CARBO Ceramics’ one-year returns compared to peers
CARBO Ceramics’ (CRR) one-year returns were 29% as of June 13, 2018. In comparison, since June 14, 2017, the Energy Select Sector SPDR ETF (XLE) has risen 15%. XLE tracks an index of US energy companies in the S&P 500 Index. The VanEck Vectors Oil Services ETF (OIH) witnessed 4% one-year returns. OIH tracks an index of 25 oilfield equipment and services companies. So, CRR outperformed OIH and XLE in the past year. CRR has also outperformed the SPDR S&P 500 ETF (SPY) since June 14, 2017. SPY has produced 14% one-year returns. SPY represents the broader market. The SPDR S&P Oil & Gas Equipment & Services ETF (XES) increased 5% in the past year as of June 13. XES provides exposure to the oil and gas equipment and services segment of the energy industry.
Crude oil price and rigs
On June 13, the West Texas Intermediate (or WTI) crude oil price was ~49% higher than it was a year ago. Led by strength in crude oil prices, the rig count increased 15% in the US in the last year as of June 13. For the latest on energy prices, read Market Realist’s Can US Crude Oil’s Recovery Be Sustained?
Some recent factors that affected CRR’s returns
- On April 26, CARBO Ceramics released its first quarter financial results. CRR’s revenues increased 42% in Q1 2018 compared to Q1 2017. The increase in hydraulic fracturing sand sales and an increase in ceramic media sales to industrial markets resulted in CRR’s revenue rise in the first quarter.
- CRR reported a $22.3 million net loss in Q1 2018, which was less than the $32.4 million net loss in Q1 2017. The Q1 2018 reduction in net loss came from increased sales combined with a reduction in certain fixed structural costs and a decrease in idling expenses.
In this series, we’ll look at short interest in CARBO Ceramics, its correlation with crude oil, and Wall Street’s recommendations.