Yesterday, May 7, Hi-Crush Partners LP (NYSE:HCLP) reported its first-quarter earnings for 2019. With the loss larger than expected, HCLP stock dropped nearly 10% in after-hours trade.
And today, May 8, HCLP stock is continuing to take a hit. At the time of writing, Hi-Crush Partners is down nearly 20%.
Here’s everything we know.
HCLP Stock Impacted by Poor Hi-Crush Partners Q1 Earnings
In the Hi-Crush Partners Q1 earnings report, the company noted a 26% Y-O-Y decline in revenues. Revenues during Q1 2019 came to $159.9 million, while the company saw revenues of $162.2 million in the fourth quarter of 2018.
The industrial sand mining company, which is based in Houston, Texas, also reported that the average sales price for frac sand dropped in Q1 2019. In the quarter, frac sand fell to $48/ton, a considerable difference from the $58/ton seen in Q4 2018.
Still, Hi-Crush Partners took an optimistic approach to its Q1 earnings. Highlighting achievements, Hi-Crush CEO Robert E. Rasmus said: “During the quarter, we completed our major capital projects on time and under budget, quickly ramped production from our second Kermit facility, and meaningfully increased our sales volumes to E&Ps to nearly two-thirds of the total.”
All reasonable points to be optimistic about, but HCLP stock is still plunging Wednesday, likely because the Q1 loss was larger than the market was expecting. And no one likes to be caught off guard.
According to Yahoo Finance, as of 12:59 PM EDT, HCLP stock is trading at $2.98, which puts the stock down 17.22%.
It’s evident Hi-Crush Partners is being punished by weaker frac sand prices, but how long will this punishment last? Can HCLP stock find a way to turn itself around? If not this week, how about next week?
Let us know what you think in the comments below, as well as what you think of the Hi-Crush Partners Q1 earnings report!
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