U.S. Silica (SLCA) Raises Industrial & Specialty Products Prices

U.S. Silica Holdings, Inc. SLCA has stated that a portion of its Industrial and Specialty Products business will hike prices for most of its non-contracted engineered clay products, mainly used in edible oil, industrial oil and petrochemical processes. The price rise is effective for shipments starting Mar 1, 2022.

Per the product and grade, the price increase will range up to 15%.

The decision is in the light of the ongoing inflationary pressures on raw materials, packaging, logistics and maintenance expenses.

SLCA’s shares have gained 11.8% over the past year against the industry’s 7% decline. The company’s estimated earnings growth rate for the current year is pegged at 30.2%.

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In its last-quarterearnings call U.S. Silica predicted sustainable long-term growth in its segments for the fourth quarter and 2022. It has a strong portfolio of industrial and specialty products and a solid pipeline of new products. It is focused on generating positive free cash flow and bolstering its balance sheet in 2022.

The company’s Oil & Gas unit is progressing through a transitional year, and strong commodity prices along with an expected rise in consumer spending are anticipated to lead to a favorable well-completion environment next year, U.S. Silica noted.

Zacks Rank & Key Picks

U.S. Silica currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks from the basic materials space are AdvanSix Inc. ASIX and Albemarle Corporation ALB, sporting a Zacks Rank #1 (Strong Buy) and Huntsman Corporation HUN, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

AdvanSix has an expected earnings growth rate of 7.4% for the current year. The Zacks Consensus Estimate for the current year has been revised 5.3% upward over the past 60 days.

AdvanSix beat the Zacks Consensus Estimate for earnings in all the four trailing quarters with an earnings surprise of 47%, on average. ASIX’s shares have also surged 83.5% over a year.

Albemarle has an expected earnings growth rate of 51.3% for the current year. The Zacks Consensus Estimate for the current year has been revised 5.4% upward over the past 60 days.

Albemarle beat the Zacks Consensus Estimate for earnings in all the four trailing quarters with an earnings surprise of 22.05%, on average. ALB’s shares have surged 36.8% over a year.

Huntsman has an expected earnings growth rate of 10.1% for the current year. The Zacks Consensus Estimate for the current year has been revised 0.8% upward over the past 60 days.

Huntsman beat the Zacks Consensus Estimate for earnings in all of the four trailing quarters and pulled off an earnings surprise of 12.83%, on average. Shares of HUN have rallied around 31.9% over a year.

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