US Silica (SLCA) Completes $100M Loan Buyout
US Silica Holdings, Inc. SLCA has made a voluntary principal repayment of a $100 million term loan. The debt was repaid at a discount to par, using excess cash on hand.
US Silica said it was happy to use some of its cash flow from strong business performance to deliver on its commitment to strengthen the balance sheet and improve its debt profile.
It continues to record strong performances in its two business segments. The company is focused on executing a long-term strategy to create shareholder value by generating free cash flow, reducing balance sheet leverage and investing in high-return industrial growth projects. , the company noted.
Shares of US Silica have fallen 7.7% in the past year against a 27.4% drop in the industry.
Image source: Zacks Investment Research
In its latest earnings call, the company said that for the second quarter and second half of 2022, two business segments are well positioned for expansion and contribution margin growth in their respective markets. SLCA has a strong portfolio of industrial and specialty products that serve several critical, high-growth and attractive end markets, supported by a strong pipeline of new products in development and price increases and surcharges, the company noted. .
In the Oil & Gas segment, the company expects a multi-year growth cycle. Strong commodity prices, particularly WTI crude oil and natural gas prices, and rising consumer spending are supporting active well completions in 2022.
The company is focused on generating free cash flow in 2022, deleveraging its balance sheet and intends to be operating cash flow positive in 2022.
US Silica Holdings, Inc. Price and Consensus
US Silica Holdings, Inc. price-consensus-chart | Quote from US Silica Holdings, Inc.
Zacks ranking and key picks
US Silica currently wears a Zacks Rank #3 (Hold).
Some top-ranked stocks in the base materials space are Albemarle Society ALB, Cabot Corporation TCC and Allegheny Technologies Inc. ATI.
Albemarle forecasts a profit growth rate of 231.7% for the current year. The Zacks consensus estimate for ALB’s current-year earnings has been revised up 17.9% over the past 60 days.
Albemarle’s earnings have exceeded Zacks’ consensus estimate in each of the past four quarters. It has a surprise on earnings for the last four quarters of around 22.5% on average. ALB has gained around 7.3% in one year and currently sports a Zacks rank of No. 1 (Strong Buy). You can see the full list of today’s Zacks #1 Rank stocks here.
Cabot, which currently sports a No. 1 Zacks rank, has an expected earnings growth rate of 22.5% for the current year. The Zacks consensus estimate for CBT earnings for the current year has been revised up 6% in the past 60 days.
Cabot’s earnings have exceeded the Zacks consensus estimate in each of the past four quarters, averaging 16.2%. CBT gained around 14.3% year on year.
Allegheny forecasts a profit growth rate of 1,046.2% for the current year. The Zacks consensus estimate for ATI’s earnings for the current year has been revised up 15.5% in the past 60 days.
Allegheny’s earnings have exceeded the Zacks consensus estimate in each of the past four quarters, averaging 128.9%. ATI gained 7.7% in one year. The company sports a No. 1 Zacks rank.
Zacks names ‘only one best choice for doubling up’
From thousands of stocks, 5 Zacks experts have each picked their favorite to skyrocket by +100% or more in the coming months. Of these 5, Research Director Sheraz Mian selects one to have the most explosive advantage of all.
It’s a little-known chemical company that’s up 65% year-on-year, but still very cheap. With relentless demand, rising earnings estimates for 2022 and $1.5 billion for stock buybacks, retail investors could jump in at any moment.
This company could rival or surpass other recent Zacks stocks which are expected to double, such as Boston Beer Company which jumped +143.0% in just over 9 months and NVIDIA which jumped +175.9% in one. year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.