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Big Beat for Carbo

TSC Staff

Earnings rose 42% at Carbo Ceramics(CRR) in the third quarter, driven by a strong sales of its material for stimulating the production of gas and oil wells.

Carbo, based in Irving, Texas, earned $11.5 million, or 72 cents a share, in the three months ended Sept. 30, compared with earnings of $8.1 million, or 52 cents a share, last year. Revenue rose 35% from a year ago to $58.5 million. Analysts had been expecting earnings of 65 cents a share on revenue of $54.7 million.

The company sold 182 million pounds of its well-fracturing ceramics, or "proppant," up 21% from last year on strong international demand. Overseas shipments rose 80% from a year ago, with international shipments making up half the company's total volume.

In the U.S., sales volume fell 2% from a year ago due to "a lack of product availability." The average selling price rose 6% due to a price increase and improved product mix.

Looking ahead, the company said it's unlikely the third quarter's financial performance will be repeated in the current period, due primarily to project timing.