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Steel Dynamics' (STLD) Earnings and Sales Top Estimates in Q4
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Steel Dynamics, Inc. (STLD - Free Report) logged net income of $188 million or 89 cents per share in fourth-quarter 2020, up from $121 million or 56 cents in the year-ago quarter.
Barring one-time items, adjusted earnings per share came in at 97 cents, which topped the Zacks Consensus Estimate of 86 cents.
Net sales in the quarter increased roughly 10% year over year to $2,601.2 million. The figure beat the Zacks Consensus Estimate of $2,501.1 million. Owing to market share gains and the symbiotic relationships between its three operating platforms, Steel Dynamics achieved strong company-wide performance despite the challenges.
Steel Dynamics, Inc. Price, Consensus and EPS Surprise
Net sales in the company's steel operations rose around 7% year over year to $1,870.8 million in the reported quarter. Operating income increased roughly 48% year over year to $297.7 million. Average product selling price for the unit gained roughly 7% year over year to $814 per ton in the reported quarter. Steel shipments inched up roughly 1% year over year to roughly 2.67 million tons. Strong demand and tight supply drove selling prices.
The company's steel fabrication operations raked in sales of around $218 million, down around 11% year over year. Operating income declined roughly 23% to $25 million on a year-over-year basis.
Net sales in metals recycling operations increased rallied almost 43% year over year to $347 million. The segment’s posted operating income of $27 million against operating loss of $5.3 million in the year-ago quarter. Demand for recycled ferrous scrap and scrap selling values increased in the fourth quarter on a rise in domestic steel production.
FY20 Results
Earnings (as reported) for full-year 2020 were $2.59 per share compared with $3.04 per share a year ago. Net sales dropped around 9% to roughly $9.6 billion.
Financial Position
Steel Dynamics ended the fourth quarter with cash and cash equivalents of $1,368.6 million, down 1% year over year. Long-term debt was around $3,015.7 million, up 14% year over year.
The company generated $137.9 million of cash flow from operations in the fourth quarter.
Outlook
Steel Dynamics stated that it expects sustained customer demand and pricing strength in 2021. The automotive sector witnessed the strongest recovery while construction remained resilient. The company is also witnessing pent up demand, as steel service center and end-user inventories are still significantly low compared with historical norms. The company is optimistic regarding the steel market dynamics in North America and expects steel consumption to grow this year.
Price Performance
Shares of Steel Dynamics have gained 19.3% in the past year compared with 27.4% rise of the industry.
Zacks Rank & Key Picks
Steel Dynamics currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Fortescue Metals Group Limited (FSUGY - Free Report) , BHP Group (BHP - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .
Fortescue has a projected earnings growth rate of 75.5% for the current fiscal. The company’s shares have surged around 148.4% in a year. It currently sports a Zacks Rank #1(Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BHP has an expected earnings growth rate of 59.5% for the current fiscal. The company’s shares have gained around 35.4% in the past year. It currently flaunts a Zacks Rank #1.
Impala has an expected earnings growth rate of 189.4% for the current fiscal. The company’s shares have rallied around 51.5% in the past year. It currently sports a Zacks Rank #1.
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Steel Dynamics' (STLD) Earnings and Sales Top Estimates in Q4
Steel Dynamics, Inc. (STLD - Free Report) logged net income of $188 million or 89 cents per share in fourth-quarter 2020, up from $121 million or 56 cents in the year-ago quarter.
Barring one-time items, adjusted earnings per share came in at 97 cents, which topped the Zacks Consensus Estimate of 86 cents.
Net sales in the quarter increased roughly 10% year over year to $2,601.2 million. The figure beat the Zacks Consensus Estimate of $2,501.1 million. Owing to market share gains and the symbiotic relationships between its three operating platforms, Steel Dynamics achieved strong company-wide performance despite the challenges.
Steel Dynamics, Inc. Price, Consensus and EPS Surprise
Steel Dynamics, Inc. price-consensus-eps-surprise-chart | Steel Dynamics, Inc. Quote
Segment Highlights
Net sales in the company's steel operations rose around 7% year over year to $1,870.8 million in the reported quarter. Operating income increased roughly 48% year over year to $297.7 million. Average product selling price for the unit gained roughly 7% year over year to $814 per ton in the reported quarter. Steel shipments inched up roughly 1% year over year to roughly 2.67 million tons. Strong demand and tight supply drove selling prices.
The company's steel fabrication operations raked in sales of around $218 million, down around 11% year over year. Operating income declined roughly 23% to $25 million on a year-over-year basis.
Net sales in metals recycling operations increased rallied almost 43% year over year to $347 million. The segment’s posted operating income of $27 million against operating loss of $5.3 million in the year-ago quarter. Demand for recycled ferrous scrap and scrap selling values increased in the fourth quarter on a rise in domestic steel production.
FY20 Results
Earnings (as reported) for full-year 2020 were $2.59 per share compared with $3.04 per share a year ago. Net sales dropped around 9% to roughly $9.6 billion.
Financial Position
Steel Dynamics ended the fourth quarter with cash and cash equivalents of $1,368.6 million, down 1% year over year. Long-term debt was around $3,015.7 million, up 14% year over year.
The company generated $137.9 million of cash flow from operations in the fourth quarter.
Outlook
Steel Dynamics stated that it expects sustained customer demand and pricing strength in 2021. The automotive sector witnessed the strongest recovery while construction remained resilient. The company is also witnessing pent up demand, as steel service center and end-user inventories are still significantly low compared with historical norms. The company is optimistic regarding the steel market dynamics in North America and expects steel consumption to grow this year.
Price Performance
Shares of Steel Dynamics have gained 19.3% in the past year compared with 27.4% rise of the industry.
Zacks Rank & Key Picks
Steel Dynamics currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Fortescue Metals Group Limited (FSUGY - Free Report) , BHP Group (BHP - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .
Fortescue has a projected earnings growth rate of 75.5% for the current fiscal. The company’s shares have surged around 148.4% in a year. It currently sports a Zacks Rank #1(Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BHP has an expected earnings growth rate of 59.5% for the current fiscal. The company’s shares have gained around 35.4% in the past year. It currently flaunts a Zacks Rank #1.
Impala has an expected earnings growth rate of 189.4% for the current fiscal. The company’s shares have rallied around 51.5% in the past year. It currently sports a Zacks Rank #1.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>