Seeking Alpha

U.S. Silica -15.6% as it warns Q4 results hurt by weather, one-time costs

  • U.S. Silica (SLCA) -15.6% premarket after issuing mixed guidance for Q4, seeing EPS of $0.31 vs. $0.43 analyst consensus estimate and revenue of $149.5M vs. $149.5M consensus.
  • Says Q4 results were hurt by severe weather which reduced well completion activity and drove higher costs, and by one-time costs which included a bad debt expense related to a customer bankruptcy; SLCA says volumes appear to have rebounded in January.
  • Says adjusted EBITDA guidance of $180M-$200M for FY 2014 reflects expectations of continuing growth, especially in its oil and gas business.
Comments (3)
  • Michael Reilly
    , contributor
    Comments (16) | Send Message
     
    Sounds like the shorts jumped out of CRR and into SLCA - what a pairs trade!
    31 Jan 2014, 08:45 AM Reply Like
  • Philip Marlowe
    , contributor
    Comments (1163) | Send Message
     
    SLCA is recovering. It is notable that even though they had problems in the cold and a bunch of drillers shut down their operations, they still hit the revenue estimates. There is no doubt that demand for sand is strong and not letting up.
    31 Jan 2014, 12:09 PM Reply Like
  • Blue22
    , contributor
    Comments (307) | Send Message
     
    This is a perfect example of bad-news-shorts tearing down the top performer in a critical sector. Gee there was some bad debt and weather problems due to a horrible winter, probably due to Global Warming or George Bush. Surprise, SLCA was right on target with the vaunted analysts prognostications, but due to something already past let's cut the hell out of the stock and short the investors!

     

    A new leak in a 60 year old oil pipe. Fortunately it was contained. Time for the majors to service their rotting pipelines and beef up security. Look for more crude trains, old pipelines, etc to be mysteriously causing big problems for the industry. "Hacks of a different color."
    31 Jan 2014, 08:20 PM Reply Like
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