Olympic Steel, Inc. ( ZEUS Quick Quote ZEUS - Free Report) will release first-quarter 2021 results before the bell on May 7. The company has a trailing four-quarter earnings surprise of 4.8%, on average. Its first-quarter results are likely to have benefited from higher metal prices and a recovery in end-market demand. Shares of Olympic Steel have rallied 257.6% in the past year compared with 160% rise of the industry.
Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
The Zacks Consensus Estimate for first-quarter sales for Olympic Steel is currently pegged at $447.2 million, which suggests a rise of around 26.2% year over year.
A Few Factors to Watch
Olympic Steel, in its fourth-quarter call, noted that it expects to deliver significantly higher profitability in the first quarter, factoring in favorable market conditions, a rapid increase in metal prices and operational discipline.
The company’s first-quarter results are expected to have supported by its actions to lower operating expenses and strength in its pipe and tube and specialty metals businesses. Improved industrial market conditions, a rebound in demand and higher metal prices are expected to have driven its top line and margins in the first quarter. Notably, metal prices have hit record highs amid tight supply. Olympic Steel is likely to have witnessed strong demand in automotive, equipment, agriculture and construction end-markets in the March quarter. Higher demand is expected to have boosted the company’s shipping volumes in the quarter.
Our proven model does not conclusively predict an earnings beat for Olympic Steel this season. The combination of a positive
Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. Earnings ESP: Earnings ESP for Olympic Steel is 0.00%. The Zacks Consensus Estimate for earnings for the first quarter is currently pegged at $1.30. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Zacks Rank: Olympic Steel currently carries a Zacks Rank #1. Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Koppers Holdings, Inc. ( KOP Quick Quote KOP - Free Report) , scheduled to release earnings on May 7, has an Earnings ESP of +5.26% and carries a Zacks Rank #2. You can see . the complete list of today’s Zacks #1 Rank stocks here GrowGeneration Corp. ( GRWG Quick Quote GRWG - Free Report) , scheduled to release earnings on May 12, has an Earnings ESP of +3.70% and carries a Zacks Rank #3. Hudbay Minerals Inc. ( HBM Quick Quote HBM - Free Report) , scheduled to release earnings on May 11, has an Earnings ESP of +57.26% and a Zacks Rank #3. Infrastructure Stock Boom to Sweep America
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