The 10-second takeaway
For the quarter ended March 31 (Q1), Steel Dynamics missed estimates on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share contracted significantly.
Margins contracted across the board.
Steel Dynamics notched revenue of $1.98 billion. The 10 analysts polled by S&P Capital IQ expected sales of $2.04 billion on the same basis. GAAP reported sales were 1.7% lower than the prior-year quarter's $2.02 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.20. The 16 earnings estimates compiled by S&P Capital IQ averaged $0.22 per share. GAAP EPS of $0.20 for Q1 were 57% lower than the prior-year quarter's $0.46 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 10.2%, 450 basis points worse than the prior-year quarter. Operating margin was 6.0%, 420 basis points worse than the prior-year quarter. Net margin was 2.3%, 300 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.12 billion. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $8.44 billion. The average EPS estimate is $1.27.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 952 members out of 988 rating the stock outperform, and 36 members rating it underperform. Among 215 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 211 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 $18.19.
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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.