Back to top

Analyst Blog

Zacks Investment Research downgraded Olympic Steel Inc. (ZEUS - Snapshot Report) to a Zacks Rank #5 (Strong Sell) on February 26, 2013.

Why the Downgrade?

Olympic Steel reported lackluster financial results for the fourth quarter and year 2012 on February 21, 2013. The company posted a net loss of 32 cents compared with the Zacks Consensus Estimate of earnings of 7 cents.

Revenue in the quarter came in at $291.7 million, down 8.8% year over year as the company suffered largely from lower steel demand and decline in prices. Olympic Steel's Flat products segment reported a revenue decline of 10.9% while revenue from Tubular and pipe products segment increased marginally.   

Operating results, excluding a goodwill impairment charge, swung into a loss and came in at $1.6 million compared with an operating income of $3.9 million reported in the year-ago quarter.    

The financial results for the quarter induced downward revisions in earnings estimates for the company. The Zacks Consensus Estimate for 2013 went down by 8.4% to $1.53 while that for 2014 decreased by 5.5% to $2.23 per share in the last 30 days. Also, negative earnings surprise in three out of four trailing quarters, with an average of -210.8%, raises our concern over the financial health of Olympic Steel.

Other Stocks to Consider

Other stocks to watch out for in the industry are Shiloh Industries Inc. , with a Zacks Rank #1 (Strong Buy) while Companhia Siderurgica Nacional (SID - Analyst Report) and Nippon Steel & Sumitomo Metal Corporation have a Zacks Rank #2 (Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UTD THERAPE… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%