Please ensure Javascript is enabled for purposes of website accessibility

Schnitzer Steel Industries Misses on Revenues but Beats on EPS

By Seth Jayson - Updated Apr 10, 2017 at 1:56PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Just the facts, Fool.

Schnitzer Steel Industries (Nasdaq: SCHN) reported earnings on April 3. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Feb. 28 (Q2), Schnitzer Steel Industries missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP earnings per share expanded. GAAP earnings per share dropped.

Gross margins grew, operating margins were steady, net margins grew.

Revenue details
Schnitzer Steel Industries reported revenue of $662.2 million. The eight analysts polled by S&P Capital IQ expected revenue of $683.4 million on the same basis. GAAP reported sales were 25% lower than the prior-year quarter's $886.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.36. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.24 per share. Non-GAAP EPS of $0.36 for Q2 were 2.9% higher than the prior-year quarter's $0.35 per share. GAAP EPS of $0.32 for Q2 were 8.6% lower than the prior-year quarter's $0.35 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 9.3%, 150 basis points better than the prior-year quarter. Operating margin was 1.9%, much about the same as the prior-year quarter. Net margin was 1.3%, 20 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $812.1 million. On the bottom line, the average EPS estimate is $0.39.

Next year's average estimate for revenue is $2.90 billion. The average EPS estimate is $0.98.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 351 members out of 371 rating the stock outperform, and 20 members rating it underperform. Among 81 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 79 give Schnitzer Steel Industries a green thumbs-up, and two 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 $30.38.

Looking for alternatives to Schnitzer Steel Industries? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Schnitzer Steel Industries, Inc. Stock Quote
Schnitzer Steel Industries, Inc.
SCHN
$38.67 (3.31%) $1.24

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
338%
 
S&P 500 Returns
119%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/17/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.