The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Steel Dynamics met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share expanded significantly.
Margins grew across the board.
Steel Dynamics notched revenue of $1.71 billion. The 14 analysts polled by S&P Capital IQ expected to see revenue of $1.69 billion on the same basis. GAAP reported sales were 8.3% lower than the prior-year quarter's $1.86 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 $0.19. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.15 per share. GAAP EPS of $0.27 for Q4 were 93% higher than the prior-year quarter's $0.14 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 10.6%, 200 basis points better than the prior-year quarter. Operating margin was 5.6%, 120 basis points better than the prior-year quarter. Net margin was 3.6%, 200 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.91 billion. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $7.63 billion. The average EPS estimate is $1.23.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 929 members out of 967 rating the stock outperform, and 38 members rating it underperform. Among 207 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 198 give Steel Dynamics a green thumbs-up, and nine 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 $15.44.
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