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Reliance Steel (RS) to Post Q1 Earnings: What's in the Cards?
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Reliance Steel & Aluminum Co. (RS - Free Report) is scheduled to come up with its first-quarter 2022 results before the opening bell on Apr 28. Benefits of strong demand across key end-use markets, acquisitions and higher year over year prices are expected to reflect on its first-quarter results.
The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 12.3%. It delivered an earnings surprise of roughly 32.1% in the last reported quarter.
Shares of Reliance Steel are up 19% over a year compared with the industry’s rise of 32.1%.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
The Zacks Consensus Estimate for revenues for Reliance Steel for the first quarter is currently pinned at $4,135 million, indicating a 45.7% year-over-year rise.
The consensus estimate for shipments for the quarter currently stands at 1,356,000 tons, reflecting a 3.8% year-over-year decline. The Zacks Consensus Estimate for average prices per ton sold stands at $3,035, suggesting a 50.4% year-over-year increase.
Factors at Play
Reliance Steel is expected to have gained from strong underlying demand in the majority of its end markets in the quarter to be reported. Demand in non-residential construction, which is Reliance Steel’s biggest end-market, has gradually expanded and is nearing the pre-pandemic levels. Demand in this market is expected to have remained healthy in the March quarter.
Reliance Steel is also likely to have witnessed continued strength in semiconductors and sustained recovery in the energy (oil and natural gas) market in the first quarter. Demand in the heavy industry also expected to have remained steady. The company is also expected to have witnessed improved demand in commercial aerospace on a recovery in activities.
The company has also been following an aggressive acquisition strategy for a while as part of its core business policy to drive operating results. Its latest acquisitions of Merfish United, Rotax Metals, Admiral Metals and Nu-Tech Precision Metals are likely to have contributed to its top line in the first quarter.
Reliance Steel is also likely to have benefited from continued strength in pricing for the majority of its products. Higher year over year average selling prices are expected to have contributed to its first-quarter performance.
Reliance Steel & Aluminum Co. Price and EPS Surprise
Our proven model does not conclusively predict an earnings beat for Reliance 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 Reliance Steel is 0.00%. The Zacks Consensus Estimate for earnings for the first quarter is currently pegged at $7.20. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Reliance 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 these have the right combination of elements to post an earnings beat this quarter:
The Zacks Consensus Estimate for Mosaic’s first-quarter earnings has been revised 14.6% upward over the past 60 days. The Zacks Consensus Estimate for MOS’s earnings for the quarter is currently pegged at $2.44.
Westlake Corporation (WLK - Free Report) , slated to release earnings on May 3, has an Earnings ESP of +17.30% and carries a Zacks Rank #1.
The Zacks Consensus Estimate for Westlake's first-quarter earnings has been revised 22.1% upward over the past 60 days. The consensus estimate for WLK’s earnings for the quarter is currently pegged at $4.53.
Methanex Corporation (MEOH - Free Report) , scheduled to release earnings on Apr 27, has an Earnings ESP of +6.70% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for Methanex's first-quarter earnings has been revised 4.5% upward over the past 60 days. The consensus estimate for MEOH’s earnings for the quarter is currently pegged at $2.09.
Image: Bigstock
Reliance Steel (RS) to Post Q1 Earnings: What's in the Cards?
Reliance Steel & Aluminum Co. (RS - Free Report) is scheduled to come up with its first-quarter 2022 results before the opening bell on Apr 28. Benefits of strong demand across key end-use markets, acquisitions and higher year over year prices are expected to reflect on its first-quarter results.
The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 12.3%. It delivered an earnings surprise of roughly 32.1% in the last reported quarter.
Shares of Reliance Steel are up 19% over a year compared with the industry’s rise of 32.1%.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
The Zacks Consensus Estimate for revenues for Reliance Steel for the first quarter is currently pinned at $4,135 million, indicating a 45.7% year-over-year rise.
The consensus estimate for shipments for the quarter currently stands at 1,356,000 tons, reflecting a 3.8% year-over-year decline. The Zacks Consensus Estimate for average prices per ton sold stands at $3,035, suggesting a 50.4% year-over-year increase.
Factors at Play
Reliance Steel is expected to have gained from strong underlying demand in the majority of its end markets in the quarter to be reported. Demand in non-residential construction, which is Reliance Steel’s biggest end-market, has gradually expanded and is nearing the pre-pandemic levels. Demand in this market is expected to have remained healthy in the March quarter.
Reliance Steel is also likely to have witnessed continued strength in semiconductors and sustained recovery in the energy (oil and natural gas) market in the first quarter. Demand in the heavy industry also expected to have remained steady. The company is also expected to have witnessed improved demand in commercial aerospace on a recovery in activities.
The company has also been following an aggressive acquisition strategy for a while as part of its core business policy to drive operating results. Its latest acquisitions of Merfish United, Rotax Metals, Admiral Metals and Nu-Tech Precision Metals are likely to have contributed to its top line in the first quarter.
Reliance Steel is also likely to have benefited from continued strength in pricing for the majority of its products. Higher year over year average selling prices are expected to have contributed to its first-quarter performance.
Reliance Steel & Aluminum Co. Price and EPS Surprise
Reliance Steel & Aluminum Co. price-eps-surprise | Reliance Steel & Aluminum Co. Quote
Zacks Model
Our proven model does not conclusively predict an earnings beat for Reliance 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 Reliance Steel is 0.00%. The Zacks Consensus Estimate for earnings for the first quarter is currently pegged at $7.20. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Reliance 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 these have the right combination of elements to post an earnings beat this quarter:
The Mosaic Company (MOS - Free Report) , scheduled to release earnings on May 2, has an Earnings ESP of +0.89% and carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Mosaic’s first-quarter earnings has been revised 14.6% upward over the past 60 days. The Zacks Consensus Estimate for MOS’s earnings for the quarter is currently pegged at $2.44.
Westlake Corporation (WLK - Free Report) , slated to release earnings on May 3, has an Earnings ESP of +17.30% and carries a Zacks Rank #1.
The Zacks Consensus Estimate for Westlake's first-quarter earnings has been revised 22.1% upward over the past 60 days. The consensus estimate for WLK’s earnings for the quarter is currently pegged at $4.53.
Methanex Corporation (MEOH - Free Report) , scheduled to release earnings on Apr 27, has an Earnings ESP of +6.70% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for Methanex's first-quarter earnings has been revised 4.5% upward over the past 60 days. The consensus estimate for MEOH’s earnings for the quarter is currently pegged at $2.09.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.