Smart Sand Inc. (NASDAQ:SND)
Shares of Smart Sand Inc. (NASDAQ:SND) gained 15.12% after the low cost producer of high-quality Northern White raw frac sand reported its best-ever quarter. Revenue for the three months ended September 30, 2017, increased 260% year-over-year, due to higher sales volumes and increased freight revenues.
According to Chief Executive Officer Charles Young, performance in the quarter underscored the company’s focus on maximizing production and effective management of railcar movements.
“Market demand for our high quality, Northern White frac sand remains strong and we look forward to bringing our additional 2.2 million tons of annual production capacity online by the end of the first quarter of 2018,” said Mr. Adams.
The sentiments appear to have strengthened investors’ confidence in the stock as it continues to bounce back from this year’s low. However, Smart Sand is still trading in a downtrend after losing more than 60% in market value since February.
According to data compiled Zacks Investment Research, Smart Sand Inc. (NASDAQ:SND) is currently rated as a ‘strong buy’ by five Wall St. analyst firms.
Smart Sand Q3 Financial Results
Revenues for the three months ended September 30, 2017 totaled $39.3 million. Smart Sand Inc. (NASDAQ:SND) attributes the 260% increase to customers billed through freight charges as well as increased sales volumes. Revenue in the quarter was also up by 32% compared to the second quarter, due to the higher average selling price.
Smart Sand sold a total of 653,400 tons in the quarter representing a 184% year over year increase from 229,600 tons sold last year. The number of tons sold in the quarter also represented a 23% increase from the second quarter.
Smart Sand Inc. (NASDAQ:SND) generated a net income of $7 million or $0.17 a share in the quarter compared to a net loss of (-$0.1) million reported last year. Adjusted EBITDA totaled $11.4 million nearly triple $4.5 million reported during the third quarter of 2016. Smart Sand attributes the increase to increase in sales volume and higher average selling price per ton.
Capital expenditure in the quarter totaled $19.9 million mostly attributed to expansion works at the Oakdale sand processing facility and investment in various enhancement and cost improvement projects.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.