Why U.S. Silica's Shares Jumped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of chemical maker U.S. Silica Holdings (NYSE: SLCA  ) rose 10% today after releasing earnings.

So what: Revenue jumped 58% to $115.9 million and net income rose 83% to $18.8 million, or $0.36 per share. Analysts only expected revenue of $104 million and earnings of $0.33 per share.  

Now what: Oil and gas proppants was the company's biggest growth driver with a 166% increase in sales. I wouldn't expect this kind of growth to continue next year as shale drilling growth slows in the U.S., but the company is clearly performing well right now. Shares are trading at just eight times next year's earnings estimates and considering the recent performance I think that gives shares a lot of room to move higher.

Interested in more info on U.S. Silica? Add it to your watchlist by clicking here.

Fool contributor Travis Hoium has no positions in the stocks mentioned above. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDrawThe Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2092840, ~/Articles/ArticleHandler.aspx, 10/23/2014 4:52:14 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement