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Steel Dynamics (STLD) Declares Completion of Note Offering
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Steel Dynamics, Inc. (STLD - Free Report) disclosed that it has completed the sale of $600 million in total principal amount of 5.375% notes due 2034. The net proceeds from the notes will be utilized for general corporate purposes, including the redemption of the company's $400 million 2.8% senior notes due December 2024.
This transaction is an important component of the company's long-term plan to establish a solid capital foundation to support its team, customers, shareholders and future growth. It remains dedicated to maintaining its investment-grade credit ratings, which will provide lower-cost and longer-term capital, and enable long-term strength, flexibility and value creation opportunities.
In the past year, the stock has gained 22.2% against the industry’s 2.1% decline in the same period.
Image Source: Zacks Investment Research
Steel Dynamics projects second-quarter 2024 earnings to be in the range of $2.64-$2.68 per share. The figure indicates a decline from first-quarter 2024 levels. In the last reported quarter, earnings were $3.67 per share. The projected figure also indicates a plunge from earnings of $4.81 per share reported in the second quarter of the previous year.
The company anticipates a notable decline in profitability from its steel operations in second-quarter 2024 compared with the first quarter’s tally, primarily due to lower realized pricing despite steady shipment levels. Domestic steel demand remains stable but buying hesitancy persists due to a weakening scrap price environment. Demand continues to be driven by the automotive, non-residential construction, energy and industrial sectors.
Zacks Rank & Key Picks
Steel Dynamics currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the basic materials space are Carpenter Technology Corporation (CRS - Free Report) , Ecolab Inc. (ECL - Free Report) and Kronos Worldwide, Inc. (KRO - Free Report) .
Carpenter Technology currently sports a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in the last four quarters, with the average earnings surprise being 15.1%. The company's shares have soared 93% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ecolab's current-year earnings is pegged at $6.59 per share, indicating a year-over-year rise of 26.5%. The consensus estimate for ECL's current-year earnings has gone up in the past 30 days. ECL, which currently carries a Zacks Rank #2 (Buy), beat the consensus estimate in the last four quarters, with the average earnings surprise being 1.3%. The company's shares have gained roughly 28.4% in the past year.
Kronos Worldwide currently carries a Zacks Rank of 2. KRO has a projected earnings growth rate of 297.7% for the current year. The company’s shares have gained around 48.9% in the past year.
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Steel Dynamics (STLD) Declares Completion of Note Offering
Steel Dynamics, Inc. (STLD - Free Report) disclosed that it has completed the sale of $600 million in total principal amount of 5.375% notes due 2034. The net proceeds from the notes will be utilized for general corporate purposes, including the redemption of the company's $400 million 2.8% senior notes due December 2024.
This transaction is an important component of the company's long-term plan to establish a solid capital foundation to support its team, customers, shareholders and future growth. It remains dedicated to maintaining its investment-grade credit ratings, which will provide lower-cost and longer-term capital, and enable long-term strength, flexibility and value creation opportunities.
In the past year, the stock has gained 22.2% against the industry’s 2.1% decline in the same period.
Image Source: Zacks Investment Research
Steel Dynamics projects second-quarter 2024 earnings to be in the range of $2.64-$2.68 per share. The figure indicates a decline from first-quarter 2024 levels. In the last reported quarter, earnings were $3.67 per share. The projected figure also indicates a plunge from earnings of $4.81 per share reported in the second quarter of the previous year.
The company anticipates a notable decline in profitability from its steel operations in second-quarter 2024 compared with the first quarter’s tally, primarily due to lower realized pricing despite steady shipment levels. Domestic steel demand remains stable but buying hesitancy persists due to a weakening scrap price environment. Demand continues to be driven by the automotive, non-residential construction, energy and industrial sectors.
Zacks Rank & Key Picks
Steel Dynamics currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the basic materials space are Carpenter Technology Corporation (CRS - Free Report) , Ecolab Inc. (ECL - Free Report) and Kronos Worldwide, Inc. (KRO - Free Report) .
Carpenter Technology currently sports a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in the last four quarters, with the average earnings surprise being 15.1%. The company's shares have soared 93% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ecolab's current-year earnings is pegged at $6.59 per share, indicating a year-over-year rise of 26.5%. The consensus estimate for ECL's current-year earnings has gone up in the past 30 days. ECL, which currently carries a Zacks Rank #2 (Buy), beat the consensus estimate in the last four quarters, with the average earnings surprise being 1.3%. The company's shares have gained roughly 28.4% in the past year.
Kronos Worldwide currently carries a Zacks Rank of 2. KRO has a projected earnings growth rate of 297.7% for the current year. The company’s shares have gained around 48.9% in the past year.