Why U.S. Silica Holdings (SLCA) Stock Is Gaining In After-Hours Trading

NEW YORK (TheStreet) -- Shares of U.S. Silica Holdings, Inc.  (SLCA) are up slightly, 0.25% to $55.58, in after-hours trading on Monday as it announced it received approval from Fairchild, WI to begin development of a new, three million ton-per-year frac sand mine and plant.

The proposed facility, which will be served by the Union Pacific Railroad, is anticipated to become operational in the fourth quarter of 2015.

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Separately, 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 several positive factors, 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, good cash flow from operations, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."

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

  • The revenue growth greatly exceeded the industry average of 4.4%. Since the same quarter one year prior, revenues rose by 47.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 166.07% over the past year, a rise that has exceeded that of the S&P 500 Index. 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.
  • Net operating cash flow has significantly increased by 716.99% to $30.31 million when compared to the same quarter last year. In addition, U S SILICA HOLDINGS INC has also vastly surpassed the industry average cash flow growth rate of -37.28%.
  • U S SILICA HOLDINGS INC has improved earnings per share by 6.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in 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 ($1.96 versus $1.41).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income increased by 6.3% when compared to the same quarter one year prior, going from $17.28 million to $18.37 million.
  • You can view the full analysis from the report here: SLCA Ratings Report
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