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Steel Dynamics' (STLD) Earnings and Sales Top Estimates in Q1
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Steel Dynamics, Inc. (STLD - Free Report) logged net income of $431 million or $2.03 per share in first-quarter 2021, up from $187 million or 88 cents in the year-ago quarter.
Barring one-time items, adjusted earnings per share came in at $2.10, which topped the Zacks Consensus Estimate of $1.98.
Net sales in the quarter increased roughly 37.7% year over year to $3,544.6 million. The figure beat the Zacks Consensus Estimate of $3,275.8 million. The company achieved record quarterly net sales, operating income and adjusted EBITDA, despite pandemic-led challenges.
Steel Dynamics, Inc. Price, Consensus and EPS Surprise
Net sales in the company's steel operations rose around 29.3% year over year to $2,510.7 million in the reported quarter. Operating income increased roughly 119.1% year over year to $641.4 million. Average product selling price for the unit gained roughly 34.5% year over year to $1,041 per ton in the reported quarter. Steel shipments inched down roughly 1% year over year to around 2.82 million tons. Significant metal spread expansion and near-record steel shipments drove operating income.
The company's steel fabrication operations raked in sales of around $256.9 million, up around 16.3% year over year. Operating income declined around 66% to $9.9 million on a year-over-year basis. The decrease in earnings does not reflect weaker demand, as order activity remains solid and customers continue to be optimistic regarding non-residential construction projects.
Net sales in metals recycling operations increased almost 61% year over year to $470 million. The segment’s posted operating income of $53.9 million against operating income of $8.3 million in the year-ago quarter. Demand for recycled scrap and prices increased in the first quarter on higher domestic steel production.
Financial Position
Steel Dynamics ended the first quarter with cash and cash equivalents of $1,245.2 million, down 14.4% year over year. Long-term debt was around $3,016.2 million, up 14% year over year.
The company generated $262 million of cash flow from operations in the first quarter.
Outlook
Steel Dynamics stated that it is witnessing strong steel demand and significantly low customer steel inventory throughout the supply chain. It forecasts that earnings for second-quarter 2021 will be higher than first-quarter levels. The company is optimistic regarding the steel market dynamics in North America. Moreover, U.S. trade policies and existing steel trade cases are expected to continue to moderate steel imports.
The company’s investment in Sinton Texas Flat Roll Steel Mill investment represents transformational competitively-advantaged strategic growth, with associated long-term value creation for shareholders, Steel Dynamics noted.
Price Performance
Shares of Steel Dynamics have gained 171.1% in the past year compared with 130.3% rise of the industry.
Zacks Rank & Other Key Picks
Steel Dynamics currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the basic materials space are Fortescue Metals Group Limited (FSUGY - Free Report) , Nucor Corporation (NUE - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .
Fortescue has a projected earnings growth rate of roughly 105% for the current fiscal. The company’s shares have surged 139.3% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Nucor has an expected earnings growth rate of around 171% for the current fiscal. The company’s shares have gained 120.3% in the past year. It currently sports a Zacks Rank #1.
Impala has an expected earnings growth rate of 197.6% for the current fiscal. The company’s shares have skyrocketed 290.1% in the past year. It currently flaunts a Zacks Rank #1.
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Steel Dynamics' (STLD) Earnings and Sales Top Estimates in Q1
Steel Dynamics, Inc. (STLD - Free Report) logged net income of $431 million or $2.03 per share in first-quarter 2021, up from $187 million or 88 cents in the year-ago quarter.
Barring one-time items, adjusted earnings per share came in at $2.10, which topped the Zacks Consensus Estimate of $1.98.
Net sales in the quarter increased roughly 37.7% year over year to $3,544.6 million. The figure beat the Zacks Consensus Estimate of $3,275.8 million. The company achieved record quarterly net sales, operating income and adjusted EBITDA, despite pandemic-led 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 29.3% year over year to $2,510.7 million in the reported quarter. Operating income increased roughly 119.1% year over year to $641.4 million. Average product selling price for the unit gained roughly 34.5% year over year to $1,041 per ton in the reported quarter. Steel shipments inched down roughly 1% year over year to around 2.82 million tons. Significant metal spread expansion and near-record steel shipments drove operating income.
The company's steel fabrication operations raked in sales of around $256.9 million, up around 16.3% year over year. Operating income declined around 66% to $9.9 million on a year-over-year basis. The decrease in earnings does not reflect weaker demand, as order activity remains solid and customers continue to be optimistic regarding non-residential construction projects.
Net sales in metals recycling operations increased almost 61% year over year to $470 million. The segment’s posted operating income of $53.9 million against operating income of $8.3 million in the year-ago quarter. Demand for recycled scrap and prices increased in the first quarter on higher domestic steel production.
Financial Position
Steel Dynamics ended the first quarter with cash and cash equivalents of $1,245.2 million, down 14.4% year over year. Long-term debt was around $3,016.2 million, up 14% year over year.
The company generated $262 million of cash flow from operations in the first quarter.
Outlook
Steel Dynamics stated that it is witnessing strong steel demand and significantly low customer steel inventory throughout the supply chain. It forecasts that earnings for second-quarter 2021 will be higher than first-quarter levels. The company is optimistic regarding the steel market dynamics in North America. Moreover, U.S. trade policies and existing steel trade cases are expected to continue to moderate steel imports.
The company’s investment in Sinton Texas Flat Roll Steel Mill investment represents transformational competitively-advantaged strategic growth, with associated long-term value creation for shareholders, Steel Dynamics noted.
Price Performance
Shares of Steel Dynamics have gained 171.1% in the past year compared with 130.3% rise of the industry.
Zacks Rank & Other Key Picks
Steel Dynamics currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the basic materials space are Fortescue Metals Group Limited (FSUGY - Free Report) , Nucor Corporation (NUE - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .
Fortescue has a projected earnings growth rate of roughly 105% for the current fiscal. The company’s shares have surged 139.3% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Nucor has an expected earnings growth rate of around 171% for the current fiscal. The company’s shares have gained 120.3% in the past year. It currently sports a Zacks Rank #1.
Impala has an expected earnings growth rate of 197.6% for the current fiscal. The company’s shares have skyrocketed 290.1% in the past year. It currently flaunts a Zacks Rank #1.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>