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Algoma Steel (ASTL) Provides Guidance for Fiscal Q3 Results
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Algoma Steel Group Inc. (ASTL - Free Report) has released guidance for its fiscal third quarter ending Dec 31, 2023. The leading Canadian producer of hot and cold rolled steel sheet and plate products anticipates total steel shipments of approximately 515,000 tons for the quarter. Additionally, the adjusted EBITDA is expected to fall within the range of C$(10) million to breakeven.
Algoma provided insights into the fiscal third quarter, noting that operations were in line with expectations. It placed a significant focus on seasonal maintenance, including the completion of the annual basic oxygen furnace relining and other servicing activities across the steelworks. Algoma attributed the impact on the quarter's results to soft demand and pricing in the previous quarter, influenced by a UAW strike and order book lag.
The company also highlighted the ongoing progress of Algoma's Electric Arc Furnace project, noting that it was on schedule and within budget. As of the quarter-end, roughly 86% of the project's total expected cost had been committed and priced based on the unchanged midpoint of the project budget.
Algoma also noted that the steel pricing began recovering in October in anticipation of a strike settlement. Post the strike, pricing has continued to improve, currently reaching near 12-month highs. Algoma expressed optimism about the strength in pricing, combined with solid market fundamentals, driving a significant improvement in realized pricing and overall fiscal results starting with the fiscal fourth quarter.
Algoma Steel’s shares have gained 59.7% in a year compared with the industry’s 30.4% growth.
The Zacks Consensus Estimate for LEU’s current-year earnings has been revised upward by 30.5% in the past 60 days. LEU beat the Zacks Consensus Estimate in each of the last four quarters, the average earnings surprise being 47.7%. The company’s shares have increased 56.7% in the past year.
The consensus estimate for AXTA’s current-year earnings is pegged at $1.58, indicating year-over-year growth of 6.8%. AXTA beat the Zacks Consensus Estimate in three of the last four quarters and missed one, the average earnings surprise being 6.7%. The company’s shares have increased 29.1% in the past year.
Quaker Chemical has a projected earnings growth rate of 28.3% for the current year. KWR has a trailing four-quarter earnings surprise of roughly 16.7%, on average. KWR shares have gained 20.3% in a year.
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Algoma Steel (ASTL) Provides Guidance for Fiscal Q3 Results
Algoma Steel Group Inc. (ASTL - Free Report) has released guidance for its fiscal third quarter ending Dec 31, 2023. The leading Canadian producer of hot and cold rolled steel sheet and plate products anticipates total steel shipments of approximately 515,000 tons for the quarter. Additionally, the adjusted EBITDA is expected to fall within the range of C$(10) million to breakeven.
Algoma provided insights into the fiscal third quarter, noting that operations were in line with expectations. It placed a significant focus on seasonal maintenance, including the completion of the annual basic oxygen furnace relining and other servicing activities across the steelworks. Algoma attributed the impact on the quarter's results to soft demand and pricing in the previous quarter, influenced by a UAW strike and order book lag.
The company also highlighted the ongoing progress of Algoma's Electric Arc Furnace project, noting that it was on schedule and within budget. As of the quarter-end, roughly 86% of the project's total expected cost had been committed and priced based on the unchanged midpoint of the project budget.
Algoma Steel Group Inc. Price and Consensus
Algoma Steel Group Inc. price-consensus-chart | Algoma Steel Group Inc. Quote
Algoma also noted that the steel pricing began recovering in October in anticipation of a strike settlement. Post the strike, pricing has continued to improve, currently reaching near 12-month highs. Algoma expressed optimism about the strength in pricing, combined with solid market fundamentals, driving a significant improvement in realized pricing and overall fiscal results starting with the fiscal fourth quarter.
Algoma Steel’s shares have gained 59.7% in a year compared with the industry’s 30.4% growth.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Algoma currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Centrus Energy Corp. (LEU - Free Report) , sporting a Zacks Rank #1 (Strong Buy) at present and Axalta Coating Systems Ltd. (AXTA - Free Report) and Quaker Chemical Corporation (KWR - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for LEU’s current-year earnings has been revised upward by 30.5% in the past 60 days. LEU beat the Zacks Consensus Estimate in each of the last four quarters, the average earnings surprise being 47.7%. The company’s shares have increased 56.7% in the past year.
The consensus estimate for AXTA’s current-year earnings is pegged at $1.58, indicating year-over-year growth of 6.8%. AXTA beat the Zacks Consensus Estimate in three of the last four quarters and missed one, the average earnings surprise being 6.7%. The company’s shares have increased 29.1% in the past year.
Quaker Chemical has a projected earnings growth rate of 28.3% for the current year. KWR has a trailing four-quarter earnings surprise of roughly 16.7%, on average. KWR shares have gained 20.3% in a year.