Emerge Energy Services (EMES): What Will Q3 Earnings Unveil?
Zacks Investment Research | Oct 27, 2017 01:00AM ET
Fracking sand player Emerge Energy Services L.P. (NYSE:EMES) is set to release its third-quarter 2017 results before the opening bell on Wednesday, Nov 1.
In the preceding three-month period, the partnership recorded a negative earnings surprise of 22.22% on shipping bottlenecks that led to unplanned plant shutdowns.
In terms of earnings surprise history, Emerge Energy Services has a dismal record. It missed estimates in each of the last four quarters.
Let’s see how things are shaping up for this announcement.
Factors to Consider This Quarter
The crude glut over the last three years and the resultant price erosion has lowered the demand for fracking sand. Additionally, Emerge Energy Services’ huge debt pile continue to hinder its ability to invest in its business.
In particular, a new mine capacity in the Permian that is slated to use regional sand has undermined the pricing outlook for existing sand suppliers. Moreover, mounting preparation cost and expenses associated with pulling railcars out of storage to quickly ramp up the utilization is also expected to play spoilsport.
Earnings Whispers
Our proven model does not conclusively show that Emerge Energy Services will beat estimates this quarter. That is because a stock needs to have both a positive Zacks Investment Research
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