We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
National Steel (SID) Q4 Earnings Miss Estimates, Revenues Up Y/Y
Read MoreHide Full Article
National Steel (SID - Free Report) reported a net income of R$197 million ($37.4 million) during the fourth quarter of 2022 compared with R$1,061 million ($190 million) in the prior-year quarter. The company delivered earnings per share (EPS) of 3 cents, missing the Zacks Consensus Estimate of 19 cents per share. It reported an EPS of 14 cents in the prior-year quarter.
During the December 2022-end quarter, net revenues came in at R$11,129 million ($2,115 million), up 7% year over year. The top line missed the Zacks Consensus Estimate of $2,203 million.
Domestic revenues decreased 10% year over year to R$5,213 million ($990 million). The company’s international business revenues improved 20% year over year to R$5,213 million ($990 million).
National Steel Company Price, Consensus and EPS Surprise
Steel: The segment’s revenues totaled R$6,055 million ($1,150 million), down 21%, year on year. Steel sales were at 1,008 thousand tons, down 1% compared with 1,023 thousand tons in the fourth quarter of 2021. Iron ore sales were 9,729 thousand tons, marking a 26% rise from the last year’s quarter.
Mining: The segment generated revenues of R$3,529 million ($670 million), up 47% year on year.
Logistics (Port and Railways): Revenues came in at R$694 million ($132 million), up 31% year over year.
Energy: The segment’s revenues totaled R$154 million ($29 million), which marked a 228% year-over-year surge.
Cement: The segment’s revenues soared 179% year over year to R$1,181 million ($224 million).
Margin & Costs
In the fourth quarter of 2022, the company’s cost of sales came in at R$7,847 million ($1,490 million) compared with R$6,606 million ($1,184 million) recorded in the year-ago quarter. Gross profit declined 13% year on year to R$3,282 million ($623 million). The gross margin came in at 29.5% compared with the year-earlier quarter’s 36.2%.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) fell 16% year over year to R$3,123 million ($593 million). EBITDA margin was 28% in the reported quarter compared with the prior-year quarter’s 36%.
Balance Sheet & Cash Flow
The company had cash and cash equivalents of R$11,991 million ($2,297 million) at the end of 2022, down from R$16,646 million ($2,983 million) at the end of 2021. The net debt to adjusted EBITDA ratio was 2.21 at the fourth-quarter 2022 end, compared with the prior-year quarter’s 0.76.
Price Performance
Image Source: Zacks Investment Research
National Steel’s shares have fallen 52% in the past year, against the industry’s 27.9% growth.
Zacks Rank & Stocks to Consider
National Steel currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space are Steel Dynamics Inc. (STLD - Free Report) , Olympic Steel Inc. (ZEUS - Free Report) and Nucor Corporation (NUE - Free Report) .
Steel Dynamics currently sports a Zacks Rank #1 (Strong Buy). STLD’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 11.3% on average. STLD has rallied around 23.2% in a year.
Olympic Steel currently sports a Zacks Rank of 1. ZEUS’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 26.2% on average. ZEUS has rallied around 51.7% in a year.
Nucor currently carries a Zacks Rank #2 (Buy). NUE’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 7.7% on average. NUE has rallied around 20.5% in a year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
National Steel (SID) Q4 Earnings Miss Estimates, Revenues Up Y/Y
National Steel (SID - Free Report) reported a net income of R$197 million ($37.4 million) during the fourth quarter of 2022 compared with R$1,061 million ($190 million) in the prior-year quarter. The company delivered earnings per share (EPS) of 3 cents, missing the Zacks Consensus Estimate of 19 cents per share. It reported an EPS of 14 cents in the prior-year quarter.
During the December 2022-end quarter, net revenues came in at R$11,129 million ($2,115 million), up 7% year over year. The top line missed the Zacks Consensus Estimate of $2,203 million.
Domestic revenues decreased 10% year over year to R$5,213 million ($990 million). The company’s international business revenues improved 20% year over year to R$5,213 million ($990 million).
National Steel Company Price, Consensus and EPS Surprise
National Steel Company price-consensus-eps-surprise-chart | National Steel Company Quote
Segment Performance
Steel: The segment’s revenues totaled R$6,055 million ($1,150 million), down 21%, year on year. Steel sales were at 1,008 thousand tons, down 1% compared with 1,023 thousand tons in the fourth quarter of 2021. Iron ore sales were 9,729 thousand tons, marking a 26% rise from the last year’s quarter.
Mining: The segment generated revenues of R$3,529 million ($670 million), up 47% year on year.
Logistics (Port and Railways): Revenues came in at R$694 million ($132 million), up 31% year over year.
Energy: The segment’s revenues totaled R$154 million ($29 million), which marked a 228% year-over-year surge.
Cement: The segment’s revenues soared 179% year over year to R$1,181 million ($224 million).
Margin & Costs
In the fourth quarter of 2022, the company’s cost of sales came in at R$7,847 million ($1,490 million) compared with R$6,606 million ($1,184 million) recorded in the year-ago quarter. Gross profit declined 13% year on year to R$3,282 million ($623 million). The gross margin came in at 29.5% compared with the year-earlier quarter’s 36.2%.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) fell 16% year over year to R$3,123 million ($593 million). EBITDA margin was 28% in the reported quarter compared with the prior-year quarter’s 36%.
Balance Sheet & Cash Flow
The company had cash and cash equivalents of R$11,991 million ($2,297 million) at the end of 2022, down from R$16,646 million ($2,983 million) at the end of 2021. The net debt to adjusted EBITDA ratio was 2.21 at the fourth-quarter 2022 end, compared with the prior-year quarter’s 0.76.
Price Performance
Image Source: Zacks Investment Research
National Steel’s shares have fallen 52% in the past year, against the industry’s 27.9% growth.
Zacks Rank & Stocks to Consider
National Steel currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space are Steel Dynamics Inc. (STLD - Free Report) , Olympic Steel Inc. (ZEUS - Free Report) and Nucor Corporation (NUE - Free Report) .
Steel Dynamics currently sports a Zacks Rank #1 (Strong Buy). STLD’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 11.3% on average. STLD has rallied around 23.2% in a year.
Olympic Steel currently sports a Zacks Rank of 1. ZEUS’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 26.2% on average. ZEUS has rallied around 51.7% in a year.
Nucor currently carries a Zacks Rank #2 (Buy). NUE’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 7.7% on average. NUE has rallied around 20.5% in a year.