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Universal Stainless (USAP) Q4 Earnings In Line, Revenues Up Y/Y

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Universal Stainless & Alloy Products, Inc. (USAP - Free Report) logged earnings of 27 cents per share in the fourth quarter of 2023. This compares with a loss of 41 cents a year ago. The figure was in line with the Zacks Consensus Estimate.

The company registered record fourth-quarter sales of $79.8 million, up around 42% year over year. The top line was driven by record premium alloys sales and strong aerospace end-market sales.

 

 

Sales by Melt Type and End Markets

Specialty alloys sales rose around 37% year over year to $57.5 million in the reported quarter. Sales of premium alloys increased roughly 56% year over year to $21.1 million. Conversion services and other sales went up around 74% year over year to around $1.2 million.

Aerospace sales climbed roughly 55% year over year to a record $61.9 million, driven by strong market demand and premium alloy share gains. In power generation, sales rose around 3% year over year to roughly $1.1 million. Oil & gas sales fell roughly 32% year over year to $3.6 million. Heavy equipment sales rose around 14% year over year to $6.4 million. General industrial, conversion services and other sales went up roughly 62% year over year to $6.8 million.

FY23 Results

Earnings per share for full-year 2023 was 53 cents. This compares with a loss of 91 cents per share a year ago. Net sales climbed around 42% year over year to $285.9 million.

Financials

Universal Stainless ended 2023 with cash of roughly $0.4 million, down around 80% year over year. Long-term debt was roughly $81.8 million, down around 14% year over year.

Cash flow from operations was $7.4 million for the reported quarter and $25.2 million for full-year 2023.

Outlook

USAP noted that it entered 2024 with a solid book of business with premium alloys representing more than a third of its backlog, along with continued strong demand in aerospace. It remains on track with its strategic plan and growth trajectory for this year and beyond.

Price Performance

Universal Stainless’ shares have surged 181.7% in a year against a 16.4% rise of the industry.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Zacks Rank & Key Picks

USAP currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks worth a look in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Denison Mines Corp. (DNN - Free Report) and Innospec Inc. (IOSP - Free Report) .

The Zacks Consensus Estimate for Carpenter Technology’s current fiscal year earnings is pegged at $3.94, indicating a year-over-year surge of 245.6%. 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 61% 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.

Denison Mines carries a Zacks Rank #1. DNN beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 300%. The company’s shares have soared roughly 92% in the past year.

The consensus estimate for Innospec’s current-year earnings is pegged at $6.72 per share, indicating a 10.3% year-over-year rise. IOSP, carrying a Zacks Rank #2 (Buy), beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 10.5%. The company’s shares have gained 23% in the past year.


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