Reliance Steel & Aluminum
The 10-second takeaway
For the quarter ended March 31 (Q1), Reliance Steel & Aluminum missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped. GAAP earnings per share dropped significantly.
Gross margins grew, operating margins contracted, net margins dropped.
Revenue details
Reliance Steel & Aluminum booked revenue of $2.03 billion. The nine analysts polled by S&P Capital IQ expected to see a top line of $2.07 billion on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $2.29 billion.

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 $1.09. The 12 earnings estimates compiled by S&P Capital IQ anticipated $1.16 per share. GAAP EPS of $1.09 for Q1 were 29% lower than the prior-year quarter's $1.54 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 26.1%, 80 basis points better than the prior-year quarter. Operating margin was 6.4%, 170 basis points worse than the prior-year quarter. Net margin was 4.1%, 100 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Looking ahead
Next quarter's average estimate for revenue is $2.50 billion. On the bottom line, the average EPS estimate is $1.22.
Next year's average estimate for revenue is $9.56 billion. The average EPS estimate is $5.46.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 540 members out of 566 rating the stock outperform, and 26 members rating it underperform. Among 116 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 111 give Reliance Steel & Aluminum a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Reliance Steel & Aluminum is outperform, with an average price target of $75.42.
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