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Olympic Steel (ZEUS) Q4 Earnings Surpass Estimates, Sales Lag
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Olympic Steel, Inc. (ZEUS - Free Report) recorded profits of $7.4 million or 64 cents per share in the fourth quarter of 2023, up from a profit of $4 million or 34 cents a year ago.
Barring one-time items, adjusted earnings came in at 36 cents per share for the reported quarter, topping the Zacks Consensus Estimate of 24 cents.
Net sales fell roughly 6% year over year to $489.4 million in the quarter. It missed the Zacks Consensus Estimate of $490.1 million. The company delivered strong results despite pricing pressure.
Olympic Steel, Inc. Price, Consensus and EPS Surprise
Adjusted EBITDA was $16.7 million for the reported quarter, up around 40% from the prior-year quarter.
Gross profit for the Carbon Flat Products segment for the reported quarter was $60.5 million, up around 61% year over year. Gross profit for the Specialty Metals Flat unit was $19.6 million, down roughly 30% from the year-ago quarter. For the Tubular and Pipe Products segment, gross profit was $33.6 million, up around 41% year over year.
FY23 Results
Net income for 2023 was $44.5 million or $3.85 per share, compared with net income of $90.9 million or $7.87 per share a year ago. Net sales declined around 16% year over year to $2,158.2 million.
Financials
The company ended 2023 with cash and cash equivalents of $13.2 million, up roughly 8% year over year. Total debt increased by $25 million year over year to $190 million at the end of 2023.
Outlook
Moving ahead, the company said that it remains committed to its disciplines around working capital, operating expenses, cash flow and debt. It is looking for opportunities to further expand its portfolio of higher-return, higher-value-add products. ZEUS remains confident in its ability to drive profitable growth and deliver strong value for shareholders.
Price Performance
Shares of ZEUS have rallied 50.1% in a year compared with a 12.4% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
ZEUS currently has a Zacks Rank #3 (Hold).
Better-ranked stocks worth a look in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Alpha Metallurgical Resources Inc. (AMR - Free Report) and Hawkins, Inc. (HWKN - Free Report) .
The consensus estimate for Carpenter Technology’s current fiscal year earnings is pegged at $4.00, indicating a year-over-year surge of 250.9%. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 12.2%. The company’s shares have gained around 37% in the past year. CRS currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Alpha Metallurgical Resources’ current-year earnings has been revised upward by 8.8% in the past 60 days. It currently carries a Zacks Rank #1. AMR delivered a trailing four-quarter earnings surprise of roughly 9.6%, on average. AMR shares are up around 148% in a year.
The consensus estimate for Hawkins’ current fiscal year earnings is pegged at $3.61 per share, indicating a year-over-year rise of 26.2%. The Zacks Consensus Estimate for HWKN’s current-year earnings has been revised 4.3% upward in the past 30 days. HWKN, a Zacks Rank #2 (Buy) stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 30.6%. The company’s shares have rallied roughly 72% in the past year.
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Olympic Steel (ZEUS) Q4 Earnings Surpass Estimates, Sales Lag
Olympic Steel, Inc. (ZEUS - Free Report) recorded profits of $7.4 million or 64 cents per share in the fourth quarter of 2023, up from a profit of $4 million or 34 cents a year ago.
Barring one-time items, adjusted earnings came in at 36 cents per share for the reported quarter, topping the Zacks Consensus Estimate of 24 cents.
Net sales fell roughly 6% year over year to $489.4 million in the quarter. It missed the Zacks Consensus Estimate of $490.1 million. The company delivered strong results despite pricing pressure.
Olympic Steel, Inc. Price, Consensus and EPS Surprise
Olympic Steel, Inc. price-consensus-eps-surprise-chart | Olympic Steel, Inc. Quote
Margins
Adjusted EBITDA was $16.7 million for the reported quarter, up around 40% from the prior-year quarter.
Gross profit for the Carbon Flat Products segment for the reported quarter was $60.5 million, up around 61% year over year. Gross profit for the Specialty Metals Flat unit was $19.6 million, down roughly 30% from the year-ago quarter. For the Tubular and Pipe Products segment, gross profit was $33.6 million, up around 41% year over year.
FY23 Results
Net income for 2023 was $44.5 million or $3.85 per share, compared with net income of $90.9 million or $7.87 per share a year ago. Net sales declined around 16% year over year to $2,158.2 million.
Financials
The company ended 2023 with cash and cash equivalents of $13.2 million, up roughly 8% year over year. Total debt increased by $25 million year over year to $190 million at the end of 2023.
Outlook
Moving ahead, the company said that it remains committed to its disciplines around working capital, operating expenses, cash flow and debt. It is looking for opportunities to further expand its portfolio of higher-return, higher-value-add products. ZEUS remains confident in its ability to drive profitable growth and deliver strong value for shareholders.
Price Performance
Shares of ZEUS have rallied 50.1% in a year compared with a 12.4% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
ZEUS currently has a Zacks Rank #3 (Hold).
Better-ranked stocks worth a look in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Alpha Metallurgical Resources Inc. (AMR - Free Report) and Hawkins, Inc. (HWKN - Free Report) .
The consensus estimate for Carpenter Technology’s current fiscal year earnings is pegged at $4.00, indicating a year-over-year surge of 250.9%. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 12.2%. The company’s shares have gained around 37% in the past year. CRS currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Alpha Metallurgical Resources’ current-year earnings has been revised upward by 8.8% in the past 60 days. It currently carries a Zacks Rank #1. AMR delivered a trailing four-quarter earnings surprise of roughly 9.6%, on average. AMR shares are up around 148% in a year.
The consensus estimate for Hawkins’ current fiscal year earnings is pegged at $3.61 per share, indicating a year-over-year rise of 26.2%. The Zacks Consensus Estimate for HWKN’s current-year earnings has been revised 4.3% upward in the past 30 days. HWKN, a Zacks Rank #2 (Buy) stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 30.6%. The company’s shares have rallied roughly 72% in the past year.