The 10-second takeaway
For the quarter ended June 30 (Q2), Steel Dynamics met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. GAAP earnings per share contracted significantly.
Margins contracted across the board.
Steel Dynamics chalked up revenue of $1.80 billion. The 13 analysts polled by S&P Capital IQ looked for revenue of $1.81 billion on the same basis. GAAP reported sales were 5.7% lower than the prior-year quarter's $1.91 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 $0.13. The 14 earnings estimates compiled by S&P Capital IQ averaged $0.13 per share. GAAP EPS of $0.13 for Q2 were 35% lower 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 8.2%, 130 basis points worse than the prior-year quarter. Operating margin was 3.9%, 150 basis points worse than the prior-year quarter. Net margin was 1.6%, 70 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.82 billion. On the bottom line, the average EPS estimate is $0.26.
Next year's average estimate for revenue is $7.25 billion. The average EPS estimate is $0.87.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 926 members out of 964 rating the stock outperform, and 38 members rating it underperform. Among 170 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 162 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 $17.32.
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