Schnitzer Steel Industries
The 10-second takeaway
For the quarter ended Nov. 30 (Q1), Schnitzer Steel Industries missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share shrank to a loss.
Gross margins were steady, operating margins dropped, net margins dropped.
Schnitzer Steel Industries notched revenue of $592.8 million. The seven analysts polled by S&P Capital IQ hoped for a top line of $616.8 million on the same basis. GAAP reported sales were 27% lower than the prior-year quarter's $812.2 million.
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 -$0.02. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.00 per share. GAAP EPS were -$0.06 for Q1 compared to $0.25 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 8.6%, about the same as the prior-year quarter. Operating margin was 0.5%, 120 basis points worse than the prior-year quarter. Net margin was -0.3%, 120 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $738.5 million. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $3.05 billion. The average EPS estimate is $1.00.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 354 members out of 374 rating the stock outperform, and 20 members rating it underperform. Among 86 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 83 give Schnitzer Steel Industries a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Schnitzer Steel Industries is hold, with an average price target of $29.88.
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