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Reliance's Q4 Earnings Miss Estimates, Revenues Fall Y/Y
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Reliance, Inc. (RS - Free Report) posted profits of $105.3 million or $1.93 per share in the fourth quarter of 2024, down from $272.7 million or $4.70 per share in the year-ago quarter. Barring one-time items, RS recorded earnings of $2.22 per share, down from $4.73 a year ago. It lagged the Zacks Consensus Estimate of $2.74.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
The company recorded net sales of $3,126.6 million, down 6.3% year over year. The top line beat the Zacks Consensus Estimate of $3,079 million. RS benefited from higher shipments amid headwinds from weaker metals pricing in the quarter.
Reliance reported a roughly 6.7% year-over-year increase in shipments (thousand tons sold) to 1,444.3. The figure beat our estimate of 1,428.4. The average selling price per ton dropped 12% year over year to $2,170. It was lower than our estimate of $2,201.
Demand in non-residential construction, including infrastructure, Reliance's largest end market, saw an improvement from the year-ago quarter. The company continues to support new construction projects across various sectors, such as public infrastructure, manufacturing, data centers and energy infrastructure. It expects demand in non-residential construction to remain at healthy levels in the first quarter of 2025, subject to seasonality.
Commercial aerospace demand was stable compared with the year-ago levels. Reliance anticipates that this demand will remain stable in the first quarter, influenced by the impact on build rates. The first quarter is also expected to benefit from high demand in the military and space-related portions of Reliance’s aerospace business.
Across the broader manufacturing sectors that the company serves, demand strengthened in the reported quarter compared with the fourth quarter of 2023. RS expects demand for its products across the broader manufacturing sector to be relatively stable in the first quarter.
Demand in the semiconductor market declined from the year-ago quarter. Reliance expects this demand to be under pressure in the first quarter due to excess inventory in the supply chain.
RS’ Financial Position
At the end of the reported quarter, RS had cash and cash equivalents of $318.1 million while carrying $1.15 billion in total outstanding debt. Reliance generated cash flow from operations of $473.3 million in the fourth quarter.
Reliance’s Q1 Outlook
Reliance anticipates a modest improvement in underlying demand in the first quarter of 2025, factoring in the current significant uncertainty surrounding domestic and international economic policy in the United States.
The company anticipates its tons sold to be up 6-8% in the first quarter compared to the fourth quarter of 2024 and up 3-5% from the year-ago quarter, considering normal seasonal trends and increased macroeconomic and political uncertainty. RS expects its average selling price per ton sold to be down 1% to up 1% compared to the fourth quarter due to stabilization of prices. Based on these expectations, the company anticipates adjusted earnings per share to be in the range of $3.30-$3.50 for the first quarter of 2025.
RS Stock’s Price Performance
Reliance’s shares have dipped 5.3% in the past year compared with the industry’s 4.1% decline.
Image Source: Zacks Investment Research
RS’ Zacks Rank & Key Picks
RS currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks worth considering in the basic materials space are ICL Group Ltd. (ICL - Free Report) , Fortuna Mining Corp. (FSM - Free Report) and Kronos Worldwide (KRO - Free Report) .
ICL is slated to report fourth-quarter results on Feb. 26. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 6 cents per share. ICL beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 18.1%. ICL carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fortuna is scheduled to release fourth-quarter results on March 5. The Zacks Consensus Estimate for FSM’s fourth-quarter earnings is pegged at 16 cents per share. FSM, a Zacks Rank #2 stock, has gained around 73.2% in the past year. FSM beat the Zacks Consensus Estimate in two of the last four quarters while missing twice, with the average earnings surprise being 53.5%
Kronos is expected to report fourth-quarter results on March 5. The consensus estimate for KRO’s fourth-quarter earnings is pegged at 11 cents per share. KRO, carrying a Zacks Rank #2, beat the consensus estimate in three of the last four quarters while missing once, with the average earnings surprise being 41.7%.
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Reliance's Q4 Earnings Miss Estimates, Revenues Fall Y/Y
Reliance, Inc. (RS - Free Report) posted profits of $105.3 million or $1.93 per share in the fourth quarter of 2024, down from $272.7 million or $4.70 per share in the year-ago quarter. Barring one-time items, RS recorded earnings of $2.22 per share, down from $4.73 a year ago. It lagged the Zacks Consensus Estimate of $2.74.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
The company recorded net sales of $3,126.6 million, down 6.3% year over year. The top line beat the Zacks Consensus Estimate of $3,079 million. RS benefited from higher shipments amid headwinds from weaker metals pricing in the quarter.
Reliance, Inc. Price, Consensus and EPS Surprise
Reliance, Inc. price-consensus-eps-surprise-chart | Reliance, Inc. Quote
Reliance's Volumes and Pricing
Reliance reported a roughly 6.7% year-over-year increase in shipments (thousand tons sold) to 1,444.3. The figure beat our estimate of 1,428.4. The average selling price per ton dropped 12% year over year to $2,170. It was lower than our estimate of $2,201.
Demand in non-residential construction, including infrastructure, Reliance's largest end market, saw an improvement from the year-ago quarter. The company continues to support new construction projects across various sectors, such as public infrastructure, manufacturing, data centers and energy infrastructure. It expects demand in non-residential construction to remain at healthy levels in the first quarter of 2025, subject to seasonality.
Commercial aerospace demand was stable compared with the year-ago levels. Reliance anticipates that this demand will remain stable in the first quarter, influenced by the impact on build rates. The first quarter is also expected to benefit from high demand in the military and space-related portions of Reliance’s aerospace business.
Across the broader manufacturing sectors that the company serves, demand strengthened in the reported quarter compared with the fourth quarter of 2023. RS expects demand for its products across the broader manufacturing sector to be relatively stable in the first quarter.
Demand in the semiconductor market declined from the year-ago quarter. Reliance expects this demand to be under pressure in the first quarter due to excess inventory in the supply chain.
RS’ Financial Position
At the end of the reported quarter, RS had cash and cash equivalents of $318.1 million while carrying $1.15 billion in total outstanding debt. Reliance generated cash flow from operations of $473.3 million in the fourth quarter.
Reliance’s Q1 Outlook
Reliance anticipates a modest improvement in underlying demand in the first quarter of 2025, factoring in the current significant uncertainty surrounding domestic and international economic policy in the United States.
The company anticipates its tons sold to be up 6-8% in the first quarter compared to the fourth quarter of 2024 and up 3-5% from the year-ago quarter, considering normal seasonal trends and increased macroeconomic and political uncertainty. RS expects its average selling price per ton sold to be down 1% to up 1% compared to the fourth quarter due to stabilization of prices. Based on these expectations, the company anticipates adjusted earnings per share to be in the range of $3.30-$3.50 for the first quarter of 2025.
RS Stock’s Price Performance
Reliance’s shares have dipped 5.3% in the past year compared with the industry’s 4.1% decline.
Image Source: Zacks Investment Research
RS’ Zacks Rank & Key Picks
RS currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks worth considering in the basic materials space are ICL Group Ltd. (ICL - Free Report) , Fortuna Mining Corp. (FSM - Free Report) and Kronos Worldwide (KRO - Free Report) .
ICL is slated to report fourth-quarter results on Feb. 26. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 6 cents per share. ICL beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 18.1%. ICL carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fortuna is scheduled to release fourth-quarter results on March 5. The Zacks Consensus Estimate for FSM’s fourth-quarter earnings is pegged at 16 cents per share. FSM, a Zacks Rank #2 stock, has gained around 73.2% in the past year. FSM beat the Zacks Consensus Estimate in two of the last four quarters while missing twice, with the average earnings surprise being 53.5%
Kronos is expected to report fourth-quarter results on March 5. The consensus estimate for KRO’s fourth-quarter earnings is pegged at 11 cents per share. KRO, carrying a Zacks Rank #2, beat the consensus estimate in three of the last four quarters while missing once, with the average earnings surprise being 41.7%.