U.S. Silica Holdings (SLCA) Moves Higher on First-Quarter Results

NEW YORK (TheStreet) -- U.S. Silica Holdings (SLCA) stock is moving higher on Wednesday after posting higher-than-expected first-quarter revenue.

By late afternoon, shares had added 8% to $44.74. Trading volume of 3.5 million was double its three-month daily average. 

Over the three months to March, the specialty mining and metals producer earned an adjusted 34 cents a share and revenue climbed 47.2% to $180.1 million. Analysts surveyed by Thomson Reuters had forecast 35 cents a share in net income and $157.8 million in revenue. 

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TheStreet Ratings team rates U S SILICA HOLDINGS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate U S SILICA HOLDINGS INC (SLCA) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 7.9%. Since the same quarter one year prior, revenues rose by 25.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Compared to its closing price of one year ago, SLCA's share price has jumped by 95.79%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SLCA should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • U S SILICA HOLDINGS INC's earnings per share declined by 24.4% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, U S SILICA HOLDINGS INC reported lower earnings of $1.41 versus $1.50 in the prior year. This year, the market expects an improvement in earnings ($1.85 versus $1.41).
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to the other companies in the Metals & Mining industry and the overall market, U S SILICA HOLDINGS INC's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • Net operating cash flow has decreased to $17.92 million or 42.10% when compared to the same quarter last year. Despite a decrease in cash flow of 42.10%, U S SILICA HOLDINGS INC is in line with the industry average cash flow growth rate of -48.79%.
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