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Ryerson Holding (RYI) to Report Q1 Earnings: What's in Store?

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Ryerson Holding Corporation (RYI - Free Report) is slated to release first-quarter 2022 results after the closing bell on May 4. Benefits of higher shipment volumes are likely to reflect on its first-quarter results.

The company beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 25.1%, on average. It posted an earnings surprise of 5.1% in the last reported quarter.

The stock has rallied 123.5% in the past year compared with the industry’s 6% rise.

 

Zacks Investment Research
Image Source: Zacks Investment Research


 

Let’s see how things are shaping up for this announcement.

What do the Estimates Say?

Ryerson Holding, in its fourth-quarter 2021 call, said that it expects first-quarter revenues in the range of $1.55-$1.65 billion. Adjusted earnings are forecast to be in the range of $3.78-$3.94 for the quarter.

Some Factors at Play

The company is likely to have benefited from higher volumes in the first quarter. It is expected to have witnessed sequentially higher shipments in the quarter. The company expects shipments to rise 7-9% on a sequential comparison basis in the March quarter. Higher shipping volumes are likely to have provided support to its top line.

Ryerson Holding is expected to have witnessed a decline in carbon prices in the first quarter. However, aluminum and nickel prices are expected to have remained strong. The company expects a 2-4% sequential decline in average selling prices in the quarter to be reported.

 

Ryerson Holding Corporation Price and EPS Surprise

 

Ryerson Holding Corporation Price and EPS Surprise

Ryerson Holding Corporation price-eps-surprise | Ryerson Holding Corporation Quote

 

Zacks Model

Our proven model does not conclusively predict an earnings beat for Ryerson Holding 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 Ryerson Holding is 0.00%. The Zacks Consensus Estimate for earnings for the first quarter is currently pegged at $3.92. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Ryerson Holding 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:

Allegheny Technologies Incorporated (ATI - Free Report) , scheduled to release earnings on May 4, has an Earnings ESP of +4.55% 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 Allegheny’s first-quarter earnings has been revised 4.8% upward over the past 60 days. The Zacks Consensus Estimate for ATI’s earnings for the quarter is currently pegged at 22 cents.

Westlake Corporation (WLK - Free Report) , slated to release earnings on May 3, has an Earnings ESP of +12.98% and carries a Zacks Rank #2.

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 $4.70.

Olympic Steel, Inc. (ZEUS - Free Report) , scheduled to release earnings on May 5, has an Earnings ESP of +6.64% and carries a Zacks Rank #1.

The Zacks Consensus Estimate for Olympic Steel’s first-quarter earnings has been revised 7.1% upward in the past 60 days. The consensus estimate for ZEUS’s earnings for the quarter is currently pegged at $2.26.


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