Companhia Siderurgica Nacional (SID - Free Report) reported third-quarter 2019 net loss of approximately R$871 million ($482.8 million) as opposed to net profit of R$752 ($190.7 million) recorded in the prior quarter. The company reported a loss per share of 35 cents in the reported quarter, wider than the Zacks Consensus Estimate of a loss per share of 2 cents. The company had reported a profit per share of 13 cents in the prior year quarter.
Revenues
In the reported quarter, the Brazilian steelmaker’s net revenues came in at R$6,006 million ($1,514.7 million), marking a year-over-year decline of 2.6%. Also, the figure missed the Zacks Consensus Estimate of $1,552 million. The downside resulted from lower sales of steel in the foreign market and less favorable pricing in mining.
Domestic revenues decreased 16% year over year to R$2,677 ($675 million). The company’s international business flourished with foreign-market revenues registering growth of 11.7%, year over year, to R$3,330 million ($839.8 million), accounting for 55.4% of net revenues.
National Steel Company Price, Consensus and EPS Surprise
Segment Performance
Steel: The segment’s revenues totaled R$3,334 million ($840.8 million), down 18.7% year over year. Production of flat-rolled products decreased 15%, year on year, while manufacturing of long-rolled products went up 6%.
Mining: The segment generated revenues of R$2,336 million ($589.2 million), reflecting a jump of 41% year over year, on higher prices and sales volumes.
Logistics: Revenues came in at R$423 million ($106.7 million), down 10% year over year.
Cement: The segment’s revenues totaled R$161 million ($40.6 million) compared with the R$160 million ($40.5 million) reported in the year-ago quarter.
Energy: The segment’s revenues slipped 29% year over year to R$74 million ($18.7 million).
Margin & Costs
In the third quarter, National Steel’s cost of sales flared up 1.6% year over year to R$4,370 million ($1,102 million). Gross profit decreased 12.3% year on year to R$1,636 million ($412.6 million). Gross margin came in at 27.2% compared with the prior-year quarter’s 30.2%.
Selling, General and Administrative expenses came in at R$567 million ($143 million), reflecting a year-over-year decline of 16%. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) decreased 3.7%, year over year, to R$1,567 million ($395.2 million). EBITDA margin was 25.4% in the reported quarter compared with the prior-year quarter’s 26.4%.
Balance Sheet & Cash Flow
Exiting the third quarter of 2019, the company had cash and cash equivalents of R$2,981 million ($716.3 million), down from the R$4,083 million ($1009 million) recorded at the end of the year-ago quarter. Net debt to adjusted EBITDA ratio was 4.93, up from the year-ago quarter’s 3.81.
Zacks Rank & Other Stocks to Consider
Companhia Siderurgica Nacional currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the basic materials space are Kinross Gold Corporation (KGC - Free Report) , Franco-Nevada Corporation (FNV - Free Report) and Kirkland Lake Gold Ltd. , each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here
Kinross has an impressive expected earnings growth rate of 190% for 2019. The company’s shares have surged 67% in the past year.
Franco-Nevada has a projected earnings growth rate of 49.3% for the ongoing year. The company’s shares have rallied 42.8% in a year’s time.
Kirkland Lake Gold has an estimated earnings growth rate of 71.3% for the current year. Its shares have soared 113.4% in the past year.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Zacks Names "Single Best Pick to Double"
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Companhia Siderurgica Nacional (SID - Free Report) reported third-quarter 2019 net loss of approximately R$871 million ($482.8 million) as opposed to net profit of R$752 ($190.7 million) recorded in the prior quarter. The company reported a loss per share of 35 cents in the reported quarter, wider than the Zacks Consensus Estimate of a loss per share of 2 cents. The company had reported a profit per share of 13 cents in the prior year quarter.
Revenues
In the reported quarter, the Brazilian steelmaker’s net revenues came in at R$6,006 million ($1,514.7 million), marking a year-over-year decline of 2.6%. Also, the figure missed the Zacks Consensus Estimate of $1,552 million. The downside resulted from lower sales of steel in the foreign market and less favorable pricing in mining.
Domestic revenues decreased 16% year over year to R$2,677 ($675 million). The company’s international business flourished with foreign-market revenues registering growth of 11.7%, year over year, to R$3,330 million ($839.8 million), accounting for 55.4% of net revenues.
National Steel Company Price, Consensus and EPS Surprise
Segment Performance
Steel: The segment’s revenues totaled R$3,334 million ($840.8 million), down 18.7% year over year. Production of flat-rolled products decreased 15%, year on year, while manufacturing of long-rolled products went up 6%.
Mining: The segment generated revenues of R$2,336 million ($589.2 million), reflecting a jump of 41% year over year, on higher prices and sales volumes.
Logistics: Revenues came in at R$423 million ($106.7 million), down 10% year over year.
Cement: The segment’s revenues totaled R$161 million ($40.6 million) compared with the R$160 million ($40.5 million) reported in the year-ago quarter.
Energy: The segment’s revenues slipped 29% year over year to R$74 million ($18.7 million).
Margin & Costs
In the third quarter, National Steel’s cost of sales flared up 1.6% year over year to R$4,370 million ($1,102 million). Gross profit decreased 12.3% year on year to R$1,636 million ($412.6 million). Gross margin came in at 27.2% compared with the prior-year quarter’s 30.2%.
Selling, General and Administrative expenses came in at R$567 million ($143 million), reflecting a year-over-year decline of 16%. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) decreased 3.7%, year over year, to R$1,567 million ($395.2 million). EBITDA margin was 25.4% in the reported quarter compared with the prior-year quarter’s 26.4%.
Balance Sheet & Cash Flow
Exiting the third quarter of 2019, the company had cash and cash equivalents of R$2,981 million ($716.3 million), down from the R$4,083 million ($1009 million) recorded at the end of the year-ago quarter. Net debt to adjusted EBITDA ratio was 4.93, up from the year-ago quarter’s 3.81.
Zacks Rank & Other Stocks to Consider
Companhia Siderurgica Nacional currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the basic materials space are Kinross Gold Corporation (KGC - Free Report) , Franco-Nevada Corporation (FNV - Free Report) and Kirkland Lake Gold Ltd. , each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here
Kinross has an impressive expected earnings growth rate of 190% for 2019. The company’s shares have surged 67% in the past year.
Franco-Nevada has a projected earnings growth rate of 49.3% for the ongoing year. The company’s shares have rallied 42.8% in a year’s time.
Kirkland Lake Gold has an estimated earnings growth rate of 71.3% for the current year. Its shares have soared 113.4% in the past year.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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