The 10-second takeaway
For the quarter ended March 31 (Q1), Steel Dynamics met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank. GAAP earnings per share grew.
Gross margins contracted, operating margins dropped, net margins expanded.
Steel Dynamics booked revenue of $1.80 billion. The 13 analysts polled by S&P Capital IQ expected to see revenue of $1.79 billion on the same basis. GAAP reported sales were 9.4% lower than the prior-year quarter's $1.98 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 $0.21. The 17 earnings estimates compiled by S&P Capital IQ forecast $0.21 per share. GAAP EPS of $0.21 for Q1 were 5.0% higher than the prior-year quarter's $0.20 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 9.8%, 40 basis points worse than the prior-year quarter. Operating margin was 5.4%, 60 basis points worse than the prior-year quarter. Net margin was 2.7%, 40 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.90 billion. On the bottom line, the average EPS estimate is $0.26.
Next year's average estimate for revenue is $7.37 billion. The average EPS estimate is $1.04.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 927 members out of 966 rating the stock outperform, and 39 members rating it underperform. Among 172 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 164 give Steel Dynamics a green thumbs-up, and eight 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 $17.16.
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