Smart sand, Inc. (SND) Stock Showing Volatility. Here’s Why

Smart sand, Inc. (SND), a company known to produce fracturing sand to serve better recovery rates in hydrocarbon exploitation, saw a plunge in its share price on Monday. The shares of the company were changing hands at $2.76, a decrease of 2.47%. Currently, in the aftermarket, the company is regaining its lost momentum back. The share price stands at $3.19, an increase of 15.58%.

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Agreement with EQT

SND stock was showing a bullish trend in the aftermarket mainly due to the fact that in the late hours of Monday, the company announced to have entered into a new agreement with EQT Production Company. Under the details of the agreement, the company intends to keep providing the EQT Company with the frac sand in the Appalachian basin. Apart from that, the company also hopes that a new trans-loading terminal in southwestern Pennsylvania would be operational by the end of the year.

Q2 Financial results

The company has announced to release its Q2 2021 financial results after the closure of the market today (Tuesday). According to analysts, the company is expected to deliver a decline in its earnings as compared to the earnings it obtained during the same quarter in the previous year. Also, the expected revenue generation by the company is estimated to be $31.15 million. Analysts believe that in case the company surpasses the expectations, SND stock could move in a positive direction, while lower than expected earnings could cause the stock to move in a negative direction.

Settlement with USW

On the 29th of July, the company announced that it has reached a settlement with $35 million with US Well Services (USW). In the first week of June, a superior court of Delaware announced a $50.9 million judgment in favor of Smart Sand, Inc. It was facing allegations of breach of contract by USW. After that news came out, the SND stock started showing upbeat behavior in NASDAQ, reaching $3.30.

Q1 Financial results

In early May, the company announced the Q1 2021 results. The company had generated revenue of $27.5 million during the quarter. During the same quarter in 2020, the company had generated greater revenue of about 447.5 million. The reason for that decrease in revenue was related to facing lower logistics revenue. Apart from that, about 760,000 tons of frac sand were sold during the Q1 of 2021. All in all, the quarter results show that the company is in a transition phase, as the effects of the COVID pandemic are largely subdue.

What future holds in store?

Analyst forecasts show that during the next quarter, ending in September 2021, the company is expected to bring in revenue of $34.9 million. For the next year, the revenue estimate is hovering between $159 million to $160 million. All in all, these figures show that the company is truly on the path to achieve stability in its revenue during the near future. As far as the performance of SND stock is concerned, previous trends have shown that the stock could well truly be on a path to attain investor interest in the future.


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