Why U.S. Silica Holdings (SLCA) Plummeted on Friday

NEW YORK (TheStreet) -- U.S. Silica Holdings (SLCA) plummeted on Friday after announcing weaker-than-expected preliminary results for the fourth quarter ended December. By late afternoon, shares had taken off 8.1% to $29.43.

The mineral producer said it anticipates quarterly revenue of $149.5 million and net earnings of 31 cents a share. Analysts polled by Thomson Reuters had anticipated revenue of $151.2 million on 39 cents a share in net income.

"Our fourth-quarter results were negatively impacted by the severe winter storms in mid- and late December," explained CEO Byran Shinn in a statement. "The weather reduced well completion activity and drove higher costs across our supply chain. We also encountered meaningful one-time costs, including a bad debt expense related to a customer bankruptcy."

For full year 2014, adjusted EBITDA is expected between $180 million and $200 million, a result of expected growth in its oil and gas business. Consensus was for full-year 2014 EBITDA of $212.8 million.

Fourth-quarter and full-year results are due for release Feb. 25.

TheStreet Ratings team rates U S SILICA HOLDINGS INC as a Hold with a ratings score of C. The team has this to say about their recommendation:

"We rate U S SILICA HOLDINGS INC (SLCA) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and generally higher debt management risk."

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