Schnitzer Steel Industries

Schnitzer Steel Industries (SCHN - Snapshot Report) has been a top-tier performer in 2008, as the company's share price has more than doubled in price on the heels of strong international demand and sustained pricing power. Analyst estimates have continued to rise in accordance with the share price, enabling this stock to maintain attractive valuations.

Schnitzer Steel Industries operates as a scrap metal re-cycler and manufacturer of finished steel products. Schnitzer is a Fortune 1000 company with a market cap. of $3.10 billion. The company was founded in 1946 and is headquartered in Portland, Oregon.

Solid Scond-Quarter Results

With strong demand driving sales, and market conditions curbing imports, Schnitzer Steel has been posting big gains. The company posted impressive second-quarter results on Apr 3 in which revenue was up to $751 million, a 24% increase from the same period last year. Net income also surged, jumping to $36 million, a 28% increase from the same period last year.

This produced earnings of $1.25 per share, easily outpacing analyst expectations of $1.00 per share.

All three of Schnitzer's operating segments recorded year-over-year growth in revenue and operating income. Schnitzer CEO John Carter noted that the solid performance was driven by continued strong worldwide demand for recycled metals and the company's ability to access those markets through its export platforms.

Estimates Continue To Rise

Analysts have continued to revise their earnings estimates upward for Schnitzer in accordance with the very favorable environment. The current-year estimate currently stands at $6.28 per share, up from just $4.66 90 days ago.

Schnitzer also boasts a very strong balance sheet, bearing particular importance in the current economic climate as many companies struggle with liquidity, carrying a debt to equity ratio of just .23%.

The Chart

Shares of SCHN have performed admirably in 2008, advancing from below $50 in late January to their current location over $110, a 52-week and all-time high. Moving forward, Schnitzer needs to maintain its earnings growth to support additional share appreciation, and based in the fundamentals, it looks well positioned to do so. Take a look at the chart below.

Read the full analyst report on SCHN