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National Steel (SID) Q4 Earnings Miss Estimates, Revenues Up Y/Y
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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.
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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.