Steel Dynamics Crushes Estimates
Steel Dynamics (NAS: STLD) reported earnings on Jan. 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Steel Dynamics met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly, and earnings per share expanded significantly.
Gross margins shrank, operating margins expanded, and net margins increased.
Steel Dynamics booked revenue of $1.9 billion. The 10 analysts polled by S&P Capital IQ expected to see revenue of $1.9 billion. Sales were 22% higher than the prior-year quarter's $1.5 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.14. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.11 per share. GAAP EPS of $0.14 for Q4 were 201% higher than the prior-year quarter's $0.05 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 8.6%, 10 basis points worse than the prior-year quarter. Operating margin was 4.4%, 50 basis points better than the prior-year quarter. Net margin was 1.6%, 110 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.1 billion. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $8.3 billion. The average EPS estimate is $1.51.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 949 members out of 986 rating the stock outperform, and 37 members rating it underperform. Among 245 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 241 give Steel Dynamics a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Steel Dynamics is outperform, with an average price target of $16.42.
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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.
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