Schnitzer Steel Industries Beats Analyst Estimates on EPS

Schnitzer Steel Industries (NAS: SCHN) reported earnings on Jan. 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Nov. 30 (Q1), Schnitzer Steel Industries beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly, and earnings per share dropped significantly.

Margins shrank across the board.

Revenue details
Schnitzer Steel Industries reported revenue of $812 million. The seven analysts polled by S&P Capital IQ predicted revenue of $787 million. Sales were 20% higher than the prior-year quarter's $675 million


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.25. The seven earnings estimates compiled by S&P Capital IQ averaged $0.22 per share. GAAP EPS of $0.25 for Q1 were 61% lower than the prior-year quarter's $0.64 per share.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 8.6%, 210 basis points worse than the prior-year quarter. Operating margin was 1.7%, 240 basis points worse than the prior-year quarter. Net margin was 0.9%, 170 basis points worse than the prior-year quarter.


Source: S&P Capital IQ. Quarterly periods.

Looking ahead
What does the future hold?

Next quarter's average estimate for revenue is $826 million. On the bottom line, the average EPS estimate is $0.86.

Next year's average estimate for revenue is $3.7 billion. The average EPS estimate is $3.56.

Investor Sentiment
The stock has a four-star rating out of five) at Motley Fool CAPS, with 358 members out of 375 rating the stock outperform, and 17 members rating it underperform. Among 99 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 98 give Schnitzer Steel Industries a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Schnitzer Steel Industries is hold, with an average price target of $54.90.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.