Yesterday, US Silica (SLCA: 24.89 -0.36%) posted solid earnings of $0.36 per share with the company reporting revenue growth of 41.2% to $104.6 million in the quarter. Both top line and bottom line were better than expected, but revenue guidance was slightly below expectations. The company expects that adjusted EBITDA would be $142 million-$150 million in line with previous guidance, so the earnings estimates should be kept intact for the next quarters. The stock responded favorably jumping 10% on the day.
The forward PE on this stock is still extremely low compared to its peers and was not affected by the same product issues (oversupply of resin coated proppant) that plagued Carbo Ceramics (CRR: 6.12 -3.92%) in its recent quarter. We still continue to believe US Silica will pay off handsomely for investors who are holding for the long term.