U.S. Silica Holdings Fell 12% on Earnings Miss, Growth Concerns

Third-quarter earnings

U.S. Silica Holdings (SLCA) reported its third-quarter earnings on October 23. The stock fell 12.2% on the day of the release. The results also impacted frac sand MLP Hi-Crush Partners (HCLP), which fell ~9.6%.

U.S. Silica Holdings missed its third-quarter revenue and EBITDA estimates. The company reported revenues of $423.2 million—10% lower than the consensus estimates. The company’s EBITDA of $105.5 million was 13% lower than estimates for the quarter.

U.S. Silica Holdings Fell 12% on Earnings Miss, Growth Concerns

The above graph shows the trend in U.S. Silica Holdings’ revenues and EBITDA over three years. The company’s revenues fell 1% sequentially and rose 23% year-over-year.

Oil and Gas segment

U.S. Silica Holdings’ sand volumes sold rose 10% sequentially for its Oil and Gas segment. The revenues fell 7%, while the segment’s contribution margin fell 22% sequentially. The decline was driven by lower pricing for the quarter.

Industrial and Specialty Products segment

U.S. Silica Holdings’ Industrial and Specialty Products segment’s revenues rose 17% sequentially. The segment’s contribution margin rose 18% sequentially in the third quarter.

“Our Industrial and Specialty Products segment had another record-breaking quarter, setting highs for revenue, contribution margin and contribution margin per ton. These impressive results were driven by a full quarter of earnings from our recent acquisition, EP Minerals, several recent price increases and favorable product mix,” said Bryan Shinn, U.S. Silica Holdings’ president and CEO.

Halliburton (HAL) reported its third-quarter results on October 22. Schlumberger (SLB) reported its third-quarter results on October 19. To learn how these companies fared in the third quarter, read Fall in Q3 Earnings, Lower Q4 Expectations Drag on Halliburton and International Operations Drive Schlumberger’s Q3 Growth.