snd

Why Smart Sand Inc. Stock is Soaring Today

What happened

Shares of Smart Sand Inc. (NASDAQ: SND) rallied more than 11% by 2:45 p.m. EDT on Thursday after posting strong second-quarter results.

So what

Smart Sand's revenue rocketed 83% year over year, and 28% sequentially, to $54.5 million, which beat the consensus estimate by $1.1 million. Earnings, likewise, came in ahead of analysts' expectations as the frack sand producer posted $10 million in net income, or $0.25 per share, $0.03 ahead of the consensus. Driving the company's strong showing was a 16% increase in volume to 839,00 tons, the highest level in the company's history.

A shovel filled with sand from a big pile.

Image source: Getty Images.

The second quarter was also important strategically. CEO Charles Young noted that the company "completed our nameplate capacity expansion at our Oakdale facility and expanded our logistics capabilities through the acquisition of Quickthree Solutions Inc., a maker of portable frack sand storage solutions."

Meanwhile, he noted that the company continues "to see new customer interest for our high-quality Northern White sand from [exploration and production] companies that see benefits in well performance from using Northern White Sand over regional sand."

Now what

Smart Sand did a good job redeeming itself after a lousy first quarter . Furthermore, it strengthened its strategic position by finishing the Oakdale expansion and completing the Quickthree acquisition, which positions it to better serve the growing needs of its customers. Those factors, when combined with strong oil pricing, position the company for continued growth in the coming quarters.

10 stocks we like better than Smart Sand, Inc.

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Smart Sand, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of August 6, 2018

Matthew DiLallo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.