The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Steel Dynamics missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share shrank significantly.
Margins contracted across the board.
Steel Dynamics reported revenue of $1.69 billion. The 14 analysts polled by S&P Capital IQ wanted to see revenue of $1.79 billion on the same basis. GAAP reported sales were 17% lower than the prior-year quarter's $2.04 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 $0.08. The 18 earnings estimates compiled by S&P Capital IQ predicted $0.12 per share. GAAP EPS of $0.06 for Q3 were 68% lower than the prior-year quarter's $0.19 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 9.2%, 60 basis points worse than the prior-year quarter. Operating margin was 4.8%, 50 basis points worse than the prior-year quarter. Net margin was 0.8%, 130 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.77 billion. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $7.49 billion. The average EPS estimate is $0.69.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 934 members out of 971 rating the stock outperform, and 37 members rating it underperform. Among 184 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 177 give Steel Dynamics a green thumbs-up, and seven 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 $15.81.
Worried about inflation? Interested in gold? Find out the best way to profit in both scenarios 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 Steel Dynamics 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. The Motley Fool has no positions in the stocks mentioned above. 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.