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Reliance Steel's (RS) Q3 Earnings & Sales Miss Estimates
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Reliance Steel (RS - Free Report) is a leading metals service center company engaged in value-added materials management and metals processing services. It distributes metal products including stainless steel, aluminum, brass, copper, titanium and alloy steel to customers across a vast spectrum of industries.
Reliance Steel is gaining from its strategic acquisitions and strong demand for its products across the aerospace and automotive markets. However, the company’s business in the energy markets remain under pressure due to depressed oil prices. Moreover, the company still remains exposed to pricing pressure.
Let’s have a quick look at this metal processor’s third-quarter 2016 release.
Estimate Trend & Surprise History
Investors should note that the earnings estimate for Reliance Steel for the third quarter has been stable over the past one month. Reliance Steel has beat the Zacks Consensus Estimate in all of the trailing 4 quarters with an average positive surprise of 9.90%.
Reliance Steel logged adjusted earnings of $1.25 per share for the quarter that missed the Zacks Consensus Estimate of $1.31.
Revenues
Reliance Steel recorded net sales of $2,185.2 million, down 4.4% year over year, missing the Zacks Consensus Estimate of $2,201 million.
Key Stats/Developments to Note
Overall sales volume declined 2.7% year over year in the quarter with average prices per ton going down 1.8% year over year.
Management expects overall sales volumes to be down 5%-7% in the fourth quarter compared with the third. Reliance Steel also anticipates its average selling price in the fourth quarter to be down 1% to 3% sequentially. The company expects adjusted earnings for the fourth quarter in the band of 65 cents to 75 cents per share.
Zacks Rank
Reliance Steel currently has a Zacks Rank #4 (Sell).
Market Reaction
Reliance Steel’s shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on Reliance Steel’s earnings report!
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Reliance Steel's (RS) Q3 Earnings & Sales Miss Estimates
Reliance Steel (RS - Free Report) is a leading metals service center company engaged in value-added materials management and metals processing services. It distributes metal products including stainless steel, aluminum, brass, copper, titanium and alloy steel to customers across a vast spectrum of industries.
Reliance Steel is gaining from its strategic acquisitions and strong demand for its products across the aerospace and automotive markets. However, the company’s business in the energy markets remain under pressure due to depressed oil prices. Moreover, the company still remains exposed to pricing pressure.
Let’s have a quick look at this metal processor’s third-quarter 2016 release.
Estimate Trend & Surprise History
Investors should note that the earnings estimate for Reliance Steel for the third quarter has been stable over the past one month. Reliance Steel has beat the Zacks Consensus Estimate in all of the trailing 4 quarters with an average positive surprise of 9.90%.
RELIANCE STEEL Price and EPS Surprise
RELIANCE STEEL Price and EPS Surprise | RELIANCE STEEL Quote
Earnings
Reliance Steel logged adjusted earnings of $1.25 per share for the quarter that missed the Zacks Consensus Estimate of $1.31.
Revenues
Reliance Steel recorded net sales of $2,185.2 million, down 4.4% year over year, missing the Zacks Consensus Estimate of $2,201 million.
Key Stats/Developments to Note
Overall sales volume declined 2.7% year over year in the quarter with average prices per ton going down 1.8% year over year.
Management expects overall sales volumes to be down 5%-7% in the fourth quarter compared with the third. Reliance Steel also anticipates its average selling price in the fourth quarter to be down 1% to 3% sequentially. The company expects adjusted earnings for the fourth quarter in the band of 65 cents to 75 cents per share.
Zacks Rank
Reliance Steel currently has a Zacks Rank #4 (Sell).
Market Reaction
Reliance Steel’s shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on Reliance Steel’s earnings report!
Confidential from Zacks
Beyond this Tale of the Tape, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>