Reliance Steel & Aluminum Outruns Estimates Again
Reliance Steel & Aluminum (NYS: RS) filed its 10-K on Feb. 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Reliance Steel & Aluminum beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share grew significantly.
Gross margins contracted, operating margins grew, and net margins increased.
Reliance Steel & Aluminum chalked up revenue of $2.03 billion. The eight analysts polled by S&P Capital IQ predicted revenue of $1.95 billion on the same basis. GAAP reported sales were 28% higher than the prior-year quarter's $1.58 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.91. The nine earnings estimates compiled by S&P Capital IQ predicted $0.78 per share on the same basis. GAAP EPS of $0.90 for Q4 were 70% higher than the prior-year quarter's $0.53 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 23.4%, 150 basis points worse than the prior-year quarter. Operating margin was 5.5%, 60 basis points better than the prior-year quarter. Net margin was 3.3%, 80 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.14 billion. On the bottom line, the average EPS estimate is $1.29.
Next year's average estimate for revenue is $8.73 billion. The average EPS estimate is $5.42.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 544 members out of 568 rating the stock outperform, and 24 members rating it underperform. Among 145 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 139 give Reliance Steel & Aluminum a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Reliance Steel & Aluminum is outperform, with an average price target of $59.18.
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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.