What Do U.S. Silica’s Revenue and Earnings Trends Indicate?

SLCA’s revenue

U.S. Silica Holdings’ (SLCA) revenue rose 47% YoY (year-over-year) in the second quarter. Its Oil & Gas segment’s revenue rose 38% YoY to $324.1 million. Higher volumes and pricing drove the segment’s revenue growth.

Its Industrial & Specialty Products segment’s revenue rose 86% YoY to $103.4 million. Higher volumes and pricing, as well as contributions from EP Minerals, drove the segment’s revenue growth in the quarter.

What Do U.S. Silica’s Revenue and Earnings Trends Indicate?

The graph above shows U.S. Silica’s revenue and analyst-adjusted EBITDA over the last four years. As the graph shows, in June 2016, the company’s revenue fell from the highs it reached in December 2014. Since then, though, it’s been on an upward trend.

SLCA’s EBITDA

U.S. Silica Holdings’ analyst-adjusted EBITDA rose 35% YoY in the second quarter. Higher revenue drove the company’s EBITDA growth. As the graph above shows, the company’s EBITDA fell to zero in March 2016 and has been on an upward trend since.

As we discussed in the previous article, higher volumes have driven U.S. Silica’s revenue and earnings growth over the last few quarters.

Hi-Crush Partners’ (HCLP) volumes rose 16% in the second quarter. Learn more in What Drove Hi-Crush Partners’ Strong Second-Quarter Earnings?

Next, let’s see how U.S. Silica Holdings looks from a valuation perspective.