Q: Can you give me your opinion of SHLE after the quarterly report that came out yesterday, as well as the outlook going forward. I thought it was basically a positive report, and they have been buying back shares, but the stock dropped heavily today. Any reason???
5i Research Answer:
The stock decline needs to be tied to the 15% gain the stock made on July 28/29. Last week in aggregate it rose 18 cents per share. EPS of $1.01 beat estimates of $0.69; revenue of $201.9M slightly missed estimates. EBITDA of $35M beat estimates by 32%. Revenue rose 14%. Margins increased as sand volumes were at a record. 225,400 shares were bought and cancelled. We would consider it a decent quarter overall.