Earning Highlights of Hot Stock: CARBO Ceramics Inc. (NYSE: CRR)

On Friday, CARBO Ceramics Inc. (NYSE: CRR) stock price moved downward at -7.14%. Its total market capitalization is $45828118. Its day lowest price was $1.51 and its hit its day highest price at $1.69. The stock recent volume is 174,703 shares in comparison to its average trading volume of 174223 shares. Looking at the stock’s price level on the past 52-week graph, CRR recorded a 52-week high of $5.32 and its 52-week low of $0.83.

CARBO Ceramics Inc. (CRR) recently stated financial results for the third quarter of 2019.

Third Quarter 2019 Results

Revenues for the third quarter of $43.5M increased 1% sequentially, and reduced 19% contrast to revenue of $53.8M in the same period of 2018. The largest contributors to the year-over-year decrease were the declines in sales of base ceramic products, environmental technologies and services, technology products and services.  These decreases were partially offset by a raise in sand-related revenue, industrial ceramic sales and additional sublease and rental income.  As a result of the adoption of ASC 842 as of January 1, 2019, sublease and rental income was classified within revenues during the three months ended September 30, 2019.  These amounts were classified as a reduction of costs for the same period in 2018.

Operating loss for the third quarter of 2019 was $28.8M contrast to $14.8M in the same period of 2018, primarily Because of impairment charges of $12.9M of some of our distribution centers and leased assets, combined with the reductions in environmental and technology sales.  About 74% of the operating loss for the third quarter of 2019 consisted of non-cash expenses.

Industrial sector revenue, comprised of industrial ceramic and contract manufacturing, was about 9% of consolidated revenue.

Industrial ceramic product sales increased 20% year-on-year.  As predictable, the Company’s industrial ceramic sales recovered from a large client’s lower activity witnessed during the second quarter of 2019.

Contract manufacturing revenue reduced 40% year-on-year.  Contract manufacturing projects are inherently lumpy at this stage in the Company’s transformation process.  In 2018, about three quarters of the entire year’s contract manufacturing revenue was earned in the third quarter of 2018.  In 2019, we are experiencing a better quarterly balance of revenues.  The Company continues to work with clients on their product development and finalizing long term contracts.

Oilfield sector revenue, comprised of base ceramic proppant, sand proppant, technology ceramic products, consulting and software, was about 76% of consolidated revenue.

Base ceramic proppant domestic sales continue to decline, while international sales improve.  The consulting and software businesses saw sequential improvement, but year-on-year declines.

Ceramic technology related products experienced growth in KRYPTOSPHERE LD and KRYPTOSPHERE XT, however overall revenue reduced 30% year-on-year primarily related to a decline in KRYPTOSPHERE HD sales offshore.  The Company continues to see delays in its KRYPTOSPHERE HD sales Because of operational issues on specific wells in the Gulf of Mexico.  This anticipated work planned during the second half of 2019 is now slated for the first quarter of 2020.

Regarding the Company’s sand business, we were recently notified that our client’s intention is to no longer purchase any frac sand under our current contract with them.  As a result, the Company is idling operations associated with its sand business during the fourth quarter of 2019.  The Company is presently evaluating alternatives for the sand business.

Environmental sector revenue for the third quarter of 2019 reduced 32% year-on-year, and comprised about 15% of consolidated revenue.

EPS growth for this year is 66.90% and EPS growth for next year is expected to reach at 42.80%. EPS growth in past five years was -22.50% while EPS growth in next five years is projected to arrive at 10.00%. Sales growth past 5 years was measured at -20.60%.

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