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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 a net income of $1.1 billion or $5.71 per share in first-quarter 2022, up from $430.5 million or $2.03 in the year-ago quarter.
Barring one-time items, adjusted earnings per share came in at $6.02, topping the Zacks Consensus Estimate of $5.58.
Net sales in the quarter increased roughly 57% year over year to a record $5,569.9 million. The figure beat the Zacks Consensus Estimate of $5,234.3 million.
Steel Dynamics, Inc. Price, Consensus and EPS Surprise
Net sales in the company's steel operations rose around 49.8% year over year to $3,762.5 million in the reported quarter. Operating income increased roughly 81.9% year over year to $1,166.9 million. The average product selling price for the unit rose around 50% year over year to $1,561 per ton in the reported quarter. The company had record steel shipments of around 2.9 million tons.
The company's steel fabrication operations raked in sales of around $929.9 million, up around 261.9% year over year. The segment posted an operating income of $466.9 million compared with an operating income of $9.9 million in the year-ago quarter. The non-residential construction sector remained strong in the quarter, leading to a record order backlog with record forward pricing for the company's steel fabrication platform.
Net sales in metals recycling operations increased almost 23.3% year over year to $579.6 million. Operating income decreased roughly 10.7% year over year to $48.1 million.
Financial Position
Steel Dynamics ended the first quarter with cash and cash equivalents of $1,189.5 million, down from $1,245.2 million in the year-ago quarter. Long-term debt declined to $3,010.1 million from $3,016.2 million in the year-ago quarter.
The company generated around $818.9 million of cash flow from operations in the first quarter.
Outlook
Steel Dynamics stated that it is confident that domestic steel consumption will continue to be strong this year and into 2023 based on the prevailing market conditions. Order entry activity continues to be strong across all of the company’s businesses. Steel prices are expected to be supported by strong demand, balanced customer inventory levels, and higher raw material costs.
The company anticipates automotive, industrial, and energy sectors to remain strong steel consumers in 2022, with demand from the construction sector at the lead. The order backlog at its steel fabrication operations remains at record volume and forward pricing levels. This along with continued strong order activity and broad customer optimism supports strong overall demand dynamics for the construction industry. STLD projects that second-quarter 2022 consolidated earnings will represent another record quarterly performance.
Price Performance
Shares of Steel Dynamics have gained 81.8% in the past year compared with a 25.9% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Steel Dynamics currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the basic materials space are The Mosaic Company (MOS - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Allegheny Technologies Incorporated (ATI - Free Report) .
Mosaic has a projected earnings growth rate of 143.5% for the current year. The Zacks Consensus Estimate for MOS' current-year earnings has been revised 39.7% upward in the past 60 days.
Mosaic’s earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing once. It delivered a trailing four-quarter earnings surprise of roughly 3.7%, on average. MOS has rallied around 129.2% in a year and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
AdvanSix has a projected earnings growth rate of 54.7% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 43.6% upward in the past 60 days.
AdvanSix’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 23.6%. ASIX has surged 93.3% in a year. The company sports a Zacks Rank #1.
Allegheny, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 684.6% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 20% upward in the past 60 days.
Allegheny’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 33.6% over a year.
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Steel Dynamics' (STLD) Earnings and Sales Top Estimates in Q1
Steel Dynamics, Inc. (STLD - Free Report) logged a net income of $1.1 billion or $5.71 per share in first-quarter 2022, up from $430.5 million or $2.03 in the year-ago quarter.
Barring one-time items, adjusted earnings per share came in at $6.02, topping the Zacks Consensus Estimate of $5.58.
Net sales in the quarter increased roughly 57% year over year to a record $5,569.9 million. The figure beat the Zacks Consensus Estimate of $5,234.3 million.
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 49.8% year over year to $3,762.5 million in the reported quarter. Operating income increased roughly 81.9% year over year to $1,166.9 million. The average product selling price for the unit rose around 50% year over year to $1,561 per ton in the reported quarter. The company had record steel shipments of around 2.9 million tons.
The company's steel fabrication operations raked in sales of around $929.9 million, up around 261.9% year over year. The segment posted an operating income of $466.9 million compared with an operating income of $9.9 million in the year-ago quarter. The non-residential construction sector remained strong in the quarter, leading to a record order backlog with record forward pricing for the company's steel fabrication platform.
Net sales in metals recycling operations increased almost 23.3% year over year to $579.6 million. Operating income decreased roughly 10.7% year over year to $48.1 million.
Financial Position
Steel Dynamics ended the first quarter with cash and cash equivalents of $1,189.5 million, down from $1,245.2 million in the year-ago quarter. Long-term debt declined to $3,010.1 million from $3,016.2 million in the year-ago quarter.
The company generated around $818.9 million of cash flow from operations in the first quarter.
Outlook
Steel Dynamics stated that it is confident that domestic steel consumption will continue to be strong this year and into 2023 based on the prevailing market conditions. Order entry activity continues to be strong across all of the company’s businesses. Steel prices are expected to be supported by strong demand, balanced customer inventory levels, and higher raw material costs.
The company anticipates automotive, industrial, and energy sectors to remain strong steel consumers in 2022, with demand from the construction sector at the lead. The order backlog at its steel fabrication operations remains at record volume and forward pricing levels. This along with continued strong order activity and broad customer optimism supports strong overall demand dynamics for the construction industry. STLD projects that second-quarter 2022 consolidated earnings will represent another record quarterly performance.
Price Performance
Shares of Steel Dynamics have gained 81.8% in the past year compared with a 25.9% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Steel Dynamics currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the basic materials space are The Mosaic Company (MOS - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Allegheny Technologies Incorporated (ATI - Free Report) .
Mosaic has a projected earnings growth rate of 143.5% for the current year. The Zacks Consensus Estimate for MOS' current-year earnings has been revised 39.7% upward in the past 60 days.
Mosaic’s earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing once. It delivered a trailing four-quarter earnings surprise of roughly 3.7%, on average. MOS has rallied around 129.2% in a year and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
AdvanSix has a projected earnings growth rate of 54.7% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 43.6% upward in the past 60 days.
AdvanSix’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 23.6%. ASIX has surged 93.3% in a year. The company sports a Zacks Rank #1.
Allegheny, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 684.6% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 20% upward in the past 60 days.
Allegheny’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 33.6% over a year.