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 U.S. Silica Holdings (NYSE: SLCA ) jumped as much as 10% today after the company reported earnings.
So what: Demand for sand used in fracking jumped 45% year over year in the first quarter and helped drive a 47.2% increase in revenue to $180.1 million. Net income only increased 6.3% to $18.4 million, or $0.34 per share, which was actually a penny behind estimates.
Now what: Management said demand for fracking sand will outstrip supply this year. That gave the company confidence to say that full-year EBITDA will be at the high end of the range of $180 million to $200 million. At 17.5 times next year's estimates, shares aren't cheap, but I think there's still room to run higher as demand picks up in U.S. Silica's end markets.
3 stock picks to ride America's energy bonanza
Record oil and natural gas production is revolutionizing the United States' energy position. Finding the right plays while historic amounts of capital expenditures are flooding the industry will pad your investment nest egg. For this reason, the Motley Fool is offering a look at three energy companies using a small IRS "loophole" to help line investor pockets. Learn this strategy, and the energy companies taking advantage, in our special report "The IRS Is Daring You To Make This Energy Investment." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free.