Reliance Steel & Aluminum
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.
Worried about inflation? Interested in gold? Find out the best way to profit in both scenarios with a little-known company we profile in "The Tiny Gold Stock Digging Up Massive Profits." Click here for instant access to this free report.
- Add Reliance Steel & Aluminum to My Watchlist.
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 of Motley 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.