Why U.S. Silica's Shares Dropped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of silica producer U.S. Silica Holdings fell as much as 10% today after the company released earnings.

So what: Revenue jumped 24% in the quarter to $129.8 million but that was short of the $134.6 million estimate from Wall Street. Earnings per share of $0.38 were $0.02 short of estimates as well, so the double miss is what investors were selling today.

Now what: This looks like a case in which expectations just got ahead of the company because U.S. Silica is growing nicely. I'd be more concerned about falling margins on the bottom line, so watch that over the next few quarters. At 10 times earnings the stock is still attractively priced; I think this is a great entry point for investors eyeing the stock.

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The article Why U.S. Silica's Shares Dropped originally appeared on Fool.com.

Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool owns shares of U.S. Silica Holdings. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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