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Steel Dynamics (STLD) Raises Cash Dividend by 25% for Q1
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Steel Dynamics, Inc.’s (STLD - Free Report) board recently announced a cash dividend of 42.5 cents per share for the first quarter of 2023. This amount marks a 25% increase over the 2022 quarterly dividend rate. The dividend is payable on or about Apr 14, 2023, to shareholders on record as of Mar 31, 2023.
The company stated that the dividend hike reflects its confidence and strength in its cash-generating capabilities. The decision is aligned with STLD’s structural growth initiatives while maintaining a strong cash dividend growth profile. The company is committed to maintaining its investment credit ratings and sustaining strong shareholder value through these distributions.
Shares of STLD have gained 88% compared with a 17.8% rise recorded by its industry.
Image Source: Zacks Investment Research
The company recorded a net income of $635 million or $3.61 per share in the fourth quarter of 2022, reflecting a decline of 41.8% from the year-ago quarter profit of $1,090.5 million or $5.49 a share. It also posted adjusted earnings of $4.37 per share, down 24.4% from the year-ago quarter’s $5.78. It, however, surpassed the Zacks Consensus Estimate of $3.60.
The company’s net sales in the fourth quarter were $4,826.2 million, which beat the Zacks Consensus Estimate of $4,732.1 million. Net sales declined 9.1% from $5,310.7 million reported in the prior-year quarter.
Steel Dynamics ended 2022 with cash and cash equivalents of $1,628.4 million, up 30.9% from the year-ago levels. Long-term debt was $3,013.2 million, essentially flat year over year.
The company generated $4.5 billion of cash flow from operations in 2022. It also repurchased $1.8 billion of its common stock during the year.
Steel Dynamics, on its fourth-quarter call, stated that customer order entry activity remains healthy across its businesses. The company believes firm steel pricing and solid order activity will benefit its performance moving ahead. Also, the company anticipates that steel consumption will ramp up in North America in 2023 and steel pricing will be supported by increased demand for lower-carbon-free emission steel, high usage of U.S.-produced steel products and lower volumes of imports.
Olympic Steel’s shares have gained 90.4% in the past year. The Zacks Consensus Estimate for ZEUS’s current-year earnings has been revised 20.6% upward in the past 60 days. ZEUS topped Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 26.2% on average.
ATI’s shares have gained 61.5% in the past year. The Zacks Consensus Estimate for ATI’s current-year earnings has been revised 1.9% upward in the past 60 days. The company has an earnings growth rate of 9% for the current year.
ATI topped Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 32.4% on average.
Cal-Maine’s shares have gained 27.5% in the past year. The company has an earnings growth rate of 515.8% for the current year. The Zacks Consensus Estimate for CALM’s current-year earnings has been revised 36.4% upward in the past 60 days.
CALM topped Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 15.3% on average.
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Steel Dynamics (STLD) Raises Cash Dividend by 25% for Q1
Steel Dynamics, Inc.’s (STLD - Free Report) board recently announced a cash dividend of 42.5 cents per share for the first quarter of 2023. This amount marks a 25% increase over the 2022 quarterly dividend rate. The dividend is payable on or about Apr 14, 2023, to shareholders on record as of Mar 31, 2023.
The company stated that the dividend hike reflects its confidence and strength in its cash-generating capabilities. The decision is aligned with STLD’s structural growth initiatives while maintaining a strong cash dividend growth profile. The company is committed to maintaining its investment credit ratings and sustaining strong shareholder value through these distributions.
Shares of STLD have gained 88% compared with a 17.8% rise recorded by its industry.
Image Source: Zacks Investment Research
The company recorded a net income of $635 million or $3.61 per share in the fourth quarter of 2022, reflecting a decline of 41.8% from the year-ago quarter profit of $1,090.5 million or $5.49 a share. It also posted adjusted earnings of $4.37 per share, down 24.4% from the year-ago quarter’s $5.78. It, however, surpassed the Zacks Consensus Estimate of $3.60.
The company’s net sales in the fourth quarter were $4,826.2 million, which beat the Zacks Consensus Estimate of $4,732.1 million. Net sales declined 9.1% from $5,310.7 million reported in the prior-year quarter.
Steel Dynamics ended 2022 with cash and cash equivalents of $1,628.4 million, up 30.9% from the year-ago levels. Long-term debt was $3,013.2 million, essentially flat year over year.
The company generated $4.5 billion of cash flow from operations in 2022. It also repurchased $1.8 billion of its common stock during the year.
Steel Dynamics, on its fourth-quarter call, stated that customer order entry activity remains healthy across its businesses. The company believes firm steel pricing and solid order activity will benefit its performance moving ahead. Also, the company anticipates that steel consumption will ramp up in North America in 2023 and steel pricing will be supported by increased demand for lower-carbon-free emission steel, high usage of U.S.-produced steel products and lower volumes of imports.
Steel Dynamics, Inc. Price and Consensus
Steel Dynamics, Inc. price-consensus-chart | Steel Dynamics, Inc. Quote
Zacks Rank & Other Key Picks
STLD currently carries a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks to consider in the basic materials space are Olympic Steel, Inc. (ZEUS - Free Report) , ATI Inc. (ATI - Free Report) , and Cal-Maine Foods, Inc. (CALM - Free Report) . All three stocks currently sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Olympic Steel’s shares have gained 90.4% in the past year. The Zacks Consensus Estimate for ZEUS’s current-year earnings has been revised 20.6% upward in the past 60 days. ZEUS topped Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 26.2% on average.
ATI’s shares have gained 61.5% in the past year. The Zacks Consensus Estimate for ATI’s current-year earnings has been revised 1.9% upward in the past 60 days. The company has an earnings growth rate of 9% for the current year.
ATI topped Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 32.4% on average.
Cal-Maine’s shares have gained 27.5% in the past year. The company has an earnings growth rate of 515.8% for the current year. The Zacks Consensus Estimate for CALM’s current-year earnings has been revised 36.4% upward in the past 60 days.
CALM topped Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 15.3% on average.