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Steel Dynamics' (STLD) Earnings and Sales Top Estimates in Q3
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Steel Dynamics, Inc. (STLD - Free Report) logged net income of $100 million or 47 cents per share in third-quarter 2020, down from $151 million or 69 cents in the year-ago quarter.
Barring one-time items, adjusted earnings per share came in at 51 cents, which topped the Zacks Consensus Estimate of 47 cents.
Net sales in the quarter fell roughly 8% year over year to $2,330.8 million. Nevertheless, the figure beat the Zacks Consensus Estimate of $2,190.8 million. The company saw a strong recovery in domestic steel demand, especially in automotive, during the quarter. It also witnessed a recovery in flat roll steel spot prices.
Steel Dynamics, Inc. Price, Consensus and EPS Surprise
Net sales in the company's steel operations declined around 12% year over year to $1,696.5 million in the reported quarter. Operating income fell roughly 40% year over year to $143.6 million. Average product selling price for the unit declined roughly 9% year over year to $734 per ton in the reported quarter. Steel shipments fell 1% year over year to roughly 2.68 million tons.
The company's fabrication operations raked in sales of $241.5 million, down around 2% year over year. Operating income rose roughly 11% to $39.3 million on a year-over-year basis.
Net sales in metals recycling operations slipped roughly 3% year over year to $272.5 million. The segment’s posted operating income of $15.5 million against operating income of $2.9 million in the year-ago quarter.
Financial Position
Steel Dynamics ended the third quarter with cash and cash equivalents of $1,267.6 million, up 11% year over year. Long-term debt was around $2,636.6 million, up 12% year over year.
The company generated $151.8 million of cash flow from operations in the third quarter.
Outlook
Steel Dynamics stated that it expects sustained customer demand and pricing strength through the remainder of 2020 and into 2021. The automotive sector has witnessed the strongest recovery while construction remained resilient. However, softness remains in the energy market, the company noted.
Price Performance
Shares of Steel Dynamics have gained 15.8% in the past year compared with the industry’s 0.9% rise.
Zacks Rank & Key Picks
Steel Dynamics currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Agnico Eagle Mines Limited (AEM - Free Report) , Eldorado Gold Corporation (EGO - Free Report) and Barrick Gold Corporation (GOLD - Free Report) .
Agnico Eagle has a projected earnings growth rate of 104.1% for the current year. The company’s shares have rallied around 79% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Eldorado Gold has a projected earnings growth rate of 2,450% for the current year. The company’s shares have shot up roughly 74% in a year. It currently carries a Zacks Rank #1.
Barrick Gold has an expected earnings growth rate of 96.1% for the current year. The company’s shares have surged around 61% in the past year. It currently carries a Zacks Rank #1.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Steel Dynamics' (STLD) Earnings and Sales Top Estimates in Q3
Steel Dynamics, Inc. (STLD - Free Report) logged net income of $100 million or 47 cents per share in third-quarter 2020, down from $151 million or 69 cents in the year-ago quarter.
Barring one-time items, adjusted earnings per share came in at 51 cents, which topped the Zacks Consensus Estimate of 47 cents.
Net sales in the quarter fell roughly 8% year over year to $2,330.8 million. Nevertheless, the figure beat the Zacks Consensus Estimate of $2,190.8 million. The company saw a strong recovery in domestic steel demand, especially in automotive, during the quarter. It also witnessed a recovery in flat roll steel spot prices.
Steel Dynamics, Inc. Price, Consensus and EPS Surprise
Steel Dynamics, Inc. price-consensus-eps-surprise-chart | Steel Dynamics, Inc. Quote
Segment Highlights
Net sales in the company's steel operations declined around 12% year over year to $1,696.5 million in the reported quarter. Operating income fell roughly 40% year over year to $143.6 million. Average product selling price for the unit declined roughly 9% year over year to $734 per ton in the reported quarter. Steel shipments fell 1% year over year to roughly 2.68 million tons.
The company's fabrication operations raked in sales of $241.5 million, down around 2% year over year. Operating income rose roughly 11% to $39.3 million on a year-over-year basis.
Net sales in metals recycling operations slipped roughly 3% year over year to $272.5 million. The segment’s posted operating income of $15.5 million against operating income of $2.9 million in the year-ago quarter.
Financial Position
Steel Dynamics ended the third quarter with cash and cash equivalents of $1,267.6 million, up 11% year over year. Long-term debt was around $2,636.6 million, up 12% year over year.
The company generated $151.8 million of cash flow from operations in the third quarter.
Outlook
Steel Dynamics stated that it expects sustained customer demand and pricing strength through the remainder of 2020 and into 2021. The automotive sector has witnessed the strongest recovery while construction remained resilient. However, softness remains in the energy market, the company noted.
Price Performance
Shares of Steel Dynamics have gained 15.8% in the past year compared with the industry’s 0.9% rise.
Zacks Rank & Key Picks
Steel Dynamics currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Agnico Eagle Mines Limited (AEM - Free Report) , Eldorado Gold Corporation (EGO - Free Report) and Barrick Gold Corporation (GOLD - Free Report) .
Agnico Eagle has a projected earnings growth rate of 104.1% for the current year. The company’s shares have rallied around 79% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Eldorado Gold has a projected earnings growth rate of 2,450% for the current year. The company’s shares have shot up roughly 74% in a year. It currently carries a Zacks Rank #1.
Barrick Gold has an expected earnings growth rate of 96.1% for the current year. The company’s shares have surged around 61% in the past year. It currently carries a Zacks Rank #1.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>