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Algoma Steel's (ASTL) Q1 Earnings and Revenues Decline Y/Y
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Algoma Steel Group Inc. (ASTL - Free Report) logged first-quarter fiscal 2024 (ended Jun 30, 2023) earnings of 85 cents per share, down from the year-ago quarter's earnings of $1.49.
The company recorded revenues of $827.2 million for the quarter, down around 11.4% year over year.
Steel revenues decreased 14% from $877.4 million in the prior year quarter to $754.5 million in the reported quarter. Revenue per ton of steel sold decreased 16.4% from $1,738 in the prior year quarter to $1,453 in the reported quarter.
Shipments for the first quarter increased 5.9% to 569,433 tons from 537,524 tons in the prior-year quarter.
Adjusted EBITDA in the first quarter was $191.2 million, down from $357.7 million in the prior-year quarter. Adjusted EBITDA margin was 23.1% for the quarter.
Algoma Steel Group Inc. Price, Consensus and EPS Surprise
Cash flows generated from operations was $163.9 million in the quarter compared with $276.6 million in the prior-year quarter. The company also declared a quarterly dividend of 5 cents per share.
EAF Project
Algoma Steel has made significant progress on its electric arc furnace (EAF) project. As of June 2023, the company invested $341 million, which is about 40% of the total projected cost of $825 million to $875 million. The project is expected to be commissioned by the end of 2024 and is set to replace the company’s existing blast furnace and basic oxygen steelmaking operations. Once the EAF project is completed, Algoma Steel will have an annual raw steel production capacity of approximately 3.7 million tons. This will match the company's downstream finishing capacity.
Price Performance
Algoma Steel’s shares have lost 26.8% in a year against 29.4% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Algoma Steel currently carries a Zacks Rank #3 (Hold).
The earnings estimate for CRS’s current year is pegged at $3.36, indicating year-over-year growth of 194%. CRS beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 10%. The company’s shares have rallied 54.2% in the past year.
The Zacks Consensus Estimate for PPG’s current-year earnings has been revised 3.5% upward in the past 60 days. PPG beat the Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 7.3% on average. The company’s shares have risen roughly 0.2% in the past year.
The consensus estimate for ALB's current-year earnings has been revised 16% upward over the past 60 days. ALB’s earnings beat the Zacks Consensus Estimate in all the last four quarters. It has a trailing four-quarter earnings surprise of roughly 33%, on average.
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Algoma Steel's (ASTL) Q1 Earnings and Revenues Decline Y/Y
Algoma Steel Group Inc. (ASTL - Free Report) logged first-quarter fiscal 2024 (ended Jun 30, 2023) earnings of 85 cents per share, down from the year-ago quarter's earnings of $1.49.
The company recorded revenues of $827.2 million for the quarter, down around 11.4% year over year.
Steel revenues decreased 14% from $877.4 million in the prior year quarter to $754.5 million in the reported quarter. Revenue per ton of steel sold decreased 16.4% from $1,738 in the prior year quarter to $1,453 in the reported quarter.
Shipments for the first quarter increased 5.9% to 569,433 tons from 537,524 tons in the prior-year quarter.
Adjusted EBITDA in the first quarter was $191.2 million, down from $357.7 million in the prior-year quarter. Adjusted EBITDA margin was 23.1% for the quarter.
Algoma Steel Group Inc. Price, Consensus and EPS Surprise
Algoma Steel Group Inc. price-consensus-eps-surprise-chart | Algoma Steel Group Inc. Quote
Financials
Cash flows generated from operations was $163.9 million in the quarter compared with $276.6 million in the prior-year quarter. The company also declared a quarterly dividend of 5 cents per share.
EAF Project
Algoma Steel has made significant progress on its electric arc furnace (EAF) project. As of June 2023, the company invested $341 million, which is about 40% of the total projected cost of $825 million to $875 million. The project is expected to be commissioned by the end of 2024 and is set to replace the company’s existing blast furnace and basic oxygen steelmaking operations. Once the EAF project is completed, Algoma Steel will have an annual raw steel production capacity of approximately 3.7 million tons. This will match the company's downstream finishing capacity.
Price Performance
Algoma Steel’s shares have lost 26.8% in a year against 29.4% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Algoma Steel currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Carpenter Technology Corporation (CRS - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and PPG Industries, Inc. (PPG - Free Report) and Albemarle Corporation (ALB - Free Report) , both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The earnings estimate for CRS’s current year is pegged at $3.36, indicating year-over-year growth of 194%. CRS beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 10%. The company’s shares have rallied 54.2% in the past year.
The Zacks Consensus Estimate for PPG’s current-year earnings has been revised 3.5% upward in the past 60 days. PPG beat the Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 7.3% on average. The company’s shares have risen roughly 0.2% in the past year.
The consensus estimate for ALB's current-year earnings has been revised 16% upward over the past 60 days. ALB’s earnings beat the Zacks Consensus Estimate in all the last four quarters. It has a trailing four-quarter earnings surprise of roughly 33%, on average.