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U.S. Silica Announces New $200M Share Repurchase Program


U.S. Silica Holdings, Inc.’s SLCA board has authorized a new $200 million share repurchase program.

The new share repurchase program reflects U.S. Silica’s commitment of returning capital to shareholders as part of its balanced capital allocation strategy, per the company. The amount and timing of any repurchases under the new authorization will be based on market conditions and other considerations determined by management.

The company believes that its capacity expansion actions and sustained strength of its operating performance will enable it to deliver strong free cash flow moving ahead.

U.S. Silica’s shares have moved up 3.5% over the past three months, outperforming the 1.8% gain recorded by its industry.

U.S. Silica recorded a profit of $31.3 million or 39 cents per share in the first quarter of 2018, a significant rise from $2.5 million or 3 cents in the year-ago quarter. Adjusted earnings of 54 cents per share topped the Zacks Consensus Estimate of 45 cents.

The company, during first-quarter earnings call, stated that it expects capital expenditures for 2018 to be in the range of $300-$350 million, mainly due to the completion of capacity expansion projects that started last year and continued investments in Sandbox.

For the second quarter, the company expects volumes in the Oil & Gas segment to rise in the range of 10-15%. Moreover, the company expects spot pricing to continue increasing in the second quarter at mid-single digit clips. It also expects improved pricing and volumes for Sandbox in the quarter.

For the Industrial and Specialty Products unit, the company expects a strong second quarter with higher volumes and margins, which are likely to be driven by a favorable product mix and positive seasonality.

U.S. Silica Holdings, Inc. Price and Consensus

U.S. Silica Holdings, Inc. Price and Consensus | U.S. Silica Holdings, Inc. Quote

Zacks Rank & Stocks to Consider

U.S. Silica currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks worth considering in the basic materials space include The Chemours Company CC, Westlake Chemical Corporation WLK and Huntsman Corporation HUN, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Chemours has an expected long-term earnings growth rate of 15.5%. Its shares have gained 13.1% in a year.

Westlake Chemical has an expected long-term earnings growth rate of 12.2%. Its shares have rallied 86.8% in a year.

Huntsman has an expected long-term earnings growth rate of 8.3%. Its shares have moved up 21% in a year.

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