Hi-Crush Partners LP (NYSE:HCLP) – Seaport Global Securities lifted their Q4 2017 earnings per share (EPS) estimates for shares of Hi-Crush Partners in a report released on Friday, according to Zacks Investment Research. Seaport Global Securities analyst S. Randhawa now anticipates that the basic materials company will post earnings of $0.54 per share for the quarter, up from their prior forecast of $0.53. Seaport Global Securities has a “Buy” rating and a $17.00 price target on the stock. Seaport Global Securities also issued estimates for Hi-Crush Partners’ Q1 2018 earnings at $0.55 EPS, Q2 2018 earnings at $0.61 EPS, Q3 2018 earnings at $0.59 EPS, Q4 2018 earnings at $0.54 EPS, FY2018 earnings at $2.29 EPS, Q1 2019 earnings at $0.48 EPS, Q2 2019 earnings at $0.48 EPS, Q3 2019 earnings at $0.48 EPS, Q4 2019 earnings at $0.45 EPS and FY2019 earnings at $1.89 EPS.
Several other brokerages have also recently issued reports on HCLP. Cowen set a $12.00 price target on Hi-Crush Partners and gave the company a “buy” rating in a research report on Wednesday, October 18th. Barclays started coverage on Hi-Crush Partners in a research report on Friday, December 15th. They issued an “equal weight” rating and a $12.00 price target on the stock. R. F. Lafferty started coverage on Hi-Crush Partners in a research report on Wednesday. They issued a “buy” rating and a $23.00 price target on the stock. UBS Group restated a “buy” rating and issued a $17.00 price target on shares of Hi-Crush Partners in a research report on Saturday, October 21st. The outlook for HCLP has turned more favourable, it reported a 3Q beat, recently announced the reinstatement of its distribution as well as a share buyback, and completed its Kermit facility and Pecos Terminal. Additionally mgmnt guided to 4Q sales volumes in the range of 2.7-2.9MM tons vs. UBSe of 2.6MM tons as it should benefit from the continued ramp of the Kermit facility. We expect HCLPs Propsteam business to continue to be a positive and it noted plans to grow the total number of crews to nine or more from seven by year end. On the pricing front, HCLP noted its expectation for modest improvements through the end of the year. With a 2018 total capex in the range of $35-$45MM and UBSe of more than $100MM of retained DCF, HCLP is 100% self-funded. We look for color on tomorrows call around the features on its credit facility, and hurdles that HCLP needs to pass to allow for the full $100MM of its buyback to be authorized, as well as how we should be thinking about the timing of the buyback. Finally, Credit Suisse Group restated an “outperform” rating and issued a $15.00 price target on shares of Hi-Crush Partners in a research report on Tuesday, October 17th. We think HCLP’s decision to return capital to shareholders ($0.15/unit distribution and $100M buyback) is a critical first step in making the frac sand space investable again. After a euphoric start to 2017, capacity addition concerns (generally and specific to Permian basin sand mines) drove significant underperformance in the frac sand space. Investors look out to 2018 and see the significant cash flow generation potential in the sector, but have worried that cash flow would be used to build new capacity, exacerbating current investor concerns. Our view is that similar moves by other leading frac sand companies (with healthy balance sheets and strong free cash flow profiles into 2018) would go a long way toward re-establishing the sector. Four equities research analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the company. Hi-Crush Partners currently has a consensus rating of “Buy” and a consensus price target of $17.07.
Shares of Hi-Crush Partners (NYSE HCLP) traded up $0.70 during mid-day trading on Monday, reaching $12.55. The company had a trading volume of 2,781,766 shares, compared to its average volume of 1,980,000. The firm has a market cap of $1,140.00, a PE ratio of 39.22 and a beta of 1.04. Hi-Crush Partners has a 1 year low of $7.25 and a 1 year high of $23.30. The company has a debt-to-equity ratio of 0.24, a current ratio of 1.77 and a quick ratio of 1.29.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in HCLP. Ninepoint Partners LP acquired a new position in Hi-Crush Partners during the 3rd quarter worth approximately $15,200,000. ING Groep NV increased its position in Hi-Crush Partners by 72.6% during the 3rd quarter. ING Groep NV now owns 2,400,552 shares of the basic materials company’s stock worth $22,805,000 after purchasing an additional 1,010,000 shares during the period. Brightline Capital Management LLC acquired a new position in Hi-Crush Partners during the 4th quarter worth approximately $5,618,000. Clear Harbor Asset Management LLC increased its position in Hi-Crush Partners by 69.5% during the 3rd quarter. Clear Harbor Asset Management LLC now owns 796,137 shares of the basic materials company’s stock worth $7,563,000 after purchasing an additional 326,414 shares during the period. Finally, Tocqueville Asset Management L.P. acquired a new position in Hi-Crush Partners during the 3rd quarter worth approximately $1,972,000. Institutional investors own 40.98% of the company’s stock.
Hi-Crush Partners declared that its board has initiated a stock buyback program on Tuesday, October 17th that allows the company to buyback $100.00 million in outstanding shares. This buyback authorization allows the basic materials company to reacquire shares of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s management believes its stock is undervalued.
The firm also recently announced a quarterly dividend, which was paid on Tuesday, February 13th. Shareholders of record on Thursday, February 1st were given a dividend of $0.20 per share. This is a boost from Hi-Crush Partners’s previous quarterly dividend of $0.15. The ex-dividend date was Wednesday, January 31st. This represents a $0.80 annualized dividend and a yield of 6.37%. Hi-Crush Partners’s payout ratio is presently 250.00%.
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About Hi-Crush Partners
Hi-Crush Partners LP is an integrated producer, transporter, marketer and distributor of monocrystalline sand, a specialized mineral that is used as a proppant to manage the recovery rates of hydrocarbons from oil and natural gas wells. Its reserves consist of northern white sand, a resource in Wisconsin and limited portions of the upper Midwest region of the United States.
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