| Will U.S. Silica (SLCA) Miss Earnings Estimates in Q1? - Analyst Blog | |
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U.S. Silica Holdings, Inc. SLCA is set to release its first-quarter 2015 results after the closing bell on Apr 28.
In the last quarter, this producer of commercial silica had delivered an earnings surprise of 0.00%. Let’s see how things are shaping up for this announcement.
Factors to Consider
U.S. Silica reported strong fourth-quarter 2014 results with adjusted EBITDA increasing 87% year over year. The company’s performance in the last quarter reflected higher volumes and strong pricing, which contributed to operating results and margins. However, U.S. Silica anticipates lower demand for its gas proppants in 2015 due to a decline in horizontal drilling activities where proppants are mostly used.
The company has not provided any guidance for adjusted EBITDA for now and will do so only when it obtains a clear idea about the demand for its products and customers’ business activities. Per U.S. Silica, it lacks visibility in its oil and gas business. Given current market conditions, the company expects its capital expenditures for 2015 to be in a range of $100−$120 million.
U.S. Silica foresees uncertainties in the oil and gas market. Also, considering asymmetric information of the markets, the company thinks that it is difficult to predict the demand for its frac sand in 2015. However, it anticipates demand to be lower in 2015. Earnings Whispers Our proven model does not conclusively show that U.S. Silica is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below:
Zacks ESP: The Earnings ESP for U.S. Silica is -4.65%. This is because the Most Accurate estimate stands at 41 cents, while the Zacks Consensus Estimate is pegged at 43 cents.
Zacks Rank: U.S. Silica’s Zacks Rank #3 (Hold) increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.
We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions. Stocks that Warrant a Look Here are some companies in the basic materials sector you may want to consider instead, as our model shows that these have the right combination of elements to post an earnings beat this quarter: Alamos Gold Inc. AGI has an Earnings ESP of +50.00% and a Zacks Rank #3.
Cliffs Natural Resources Inc. CLF has an Earnings ESP of +15.79% and a Zacks Rank #3. Eldorado Gold Corporation EGO has an earnings ESP of +50.00% and a Zacks Rank #3. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CLIFFS NATURAL (CLF): Free Stock Analysis Report US SILICA HOLDI (SLCA): Free Stock Analysis Report ALAMOS GOLD INC (AGI): Free Stock Analysis Report ELDORADO GOLD (EGO): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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CLIFFS Natural Resources
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PRODUCER |
CODE : CLF |
ISIN : US18683K1016 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
CLIFFS Natural Res is a iron producing company based in United states of america. CLIFFS Natural Res produces iron, coal in Australia, in Brazil and in Canada, and holds various exploration projects in Canada. Its main assets in production are WABUSH MINE, EMPIRE AND TILDEN MINES, HIBBING TACONITE, NORTHSHORE MINE, UNITED TACONITE, OAK GROVE MINE, GREEN RIDGE MINE and PINNACLE MINE in Canada, AUSTRALIAN IRON ORE and SONOMA in Australia and AMAPA in Brazil and its main exploration properties are MT JACKSON J1 in Australia and DIAGNOS, WAWA, FREEWEST, MC FAULD'S LAKE, MACFADYEN, WAWA CLAIMS and BIG DADDY in Canada. CLIFFS Natural Res is listed in France, in Germany and in United States of America. Its market capitalisation is US$ 5.4 billions as of today (€ 5.1 billions). Its stock quote reached its highest recent level on May 16, 2008 at US$ 99.17, and its lowest recent point on January 15, 2016 at US$ 1.20. CLIFFS Natural Res has 297 400 968 shares outstanding. |