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Steel Dynamics (STLD) Expects Record Q3 Earnings on High Demand

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Steel Dynamics, Inc. (STLD - Free Report) announced third-quarter earnings guidance in the range of $4.78-$4.82 per share, which suggests a record quarterly performance. It expects third-quarter adjusted earnings in the range of $4.88-$4.92 per share.

The company’s second-quarter 2021 earnings were $3.32 per share, and adjusted earnings were $3.40 per share. Third-quarter earnings in the previous year were 47 cents per share and adjusted earnings were 51 cents per share.

Steel Dynamics expects sequentially higher profit in its steel operations in the third quarter, driven by strong underlying steel demand and significant metal spread expansion across the entire platform, especially within the flat roll steel operations. Steel shipments in the third quarter are projected to be strong across the company's steel portfolio.

Domestic steel demand also remains strong, which along with sustained low flat roll steel inventories offset higher steel selling prices. The company expects this momentum to continue, leading to even stronger fourth-quarter results.

Earnings from the company's metals recycling operations are projected to be in line with second-quarter results on higher sequential ferrous metal margin offsetting lower volume. Steel Dynamics also sees sequentially higher earnings in its steel fabrication operations in the third quarter on higher prices and record expected shipments.

The company bought back roughly $280 million of its common stock during the third quarter through Sep 10.

Shares of Steel Dynamics have gained 108.1% in the past year compared with 103.2% rise of the industry.

Zacks Investment Research
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Zacks Rank & Key Picks

Steel Dynamics currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Nucor Corporation (NUE - Free Report) , The Chemours Company (CC - Free Report) and Olin Corporation (OLN - Free Report) .

Nucor has a projected earnings growth rate of around 478.7% for the current year. The company’s shares have soared 123.9% 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.

Chemours has an expected earnings growth rate of around 86.4% for the current year. The company’s shares have gained 41.4% in the past year. It currently carries a Zacks Rank #2 (Buy).

Olin has an expected earnings growth rate of around 630.4% for the current fiscal. The company’s shares have surged 302.2% in the past year. It currently carries a Zacks Rank #2.

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