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Steel Stocks' Q2 Earnings to Watch on Aug 9: FSTR & RYI
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According to the Zacks Industry classification, Steel is broadly grouped under Basic Materials, one of the 16 broad Zacks sectors. Below we briefly discuss the broader sectors’ earnings trend so far in the Apr–Jun 2016 quarter.
As of Aug 5, roughly 95% of Basic Materials stocks in the S&P 500 Group reported results for the April–June quarter, recording 11.8% decline in earnings and 9.1% fall in revenue. We note that headwinds like economic sluggishness of major industrial goods’ consumers like China, forex issues and dismal pricing conditions in energy & mining markets might limit growth. Considering these headwinds, earnings for the basic materials stocks in the S&P 500 Group are predicted to decline 11.7%, while revenue will likely fall 7.6%.
What’s in Store for 2 Steel Stocks, FSTR & RYI, for Apr–Jun ‘16 Quarter?
Below we discuss briefly the expectations from the upcoming results (April–June quarter) for two steel stocks:
LB Foster Co. (FSTR - Free Report) : This steel stock is slated to release its second-quarter 2016 results on Aug 9, before the market opens. In the four trailing quarters, the company reported lower-than-expected results with an average negative earnings surprise of 79.35%.
Our proven model does not conclusively show that LB Foster Co. will be able to pull an earnings surprise this quarter. This is because the company lacks the right combination of two key ingredients — a positive Earnings ESP (the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate) and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold). The company currently carries a Zacks Rank #4 (Sell) and a 0.00% Earnings ESP. Over the last 60 days, the Zacks Consensus Estimate for the stock has decreased 29.6% to 19 cents per share for the second quarter.
Note that we caution against stocks with Zacks Rank #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Ryerson Holding Corporation (RYI - Free Report) : This steel company is slated to release its second-quarter 2016 results on Aug 9, after the market closes. The company reported lower-than-expected results in one of the four trailing quarters, while posting better-than-expected results in three. Average earnings surprise was a positive 118.19%.
Our proven model conclusively shows that Ryerson Holding will likely beat earnings this quarter because it currently carries a Zacks Rank #1 and a +8.70% Earnings ESP. The Zacks Consensus Estimate for the stock is currently pegged at 46 cents per share for second-quarter 2016.
Stay tuned! Check back on our full write-up on earnings release of LB Foster Co.
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Steel Stocks' Q2 Earnings to Watch on Aug 9: FSTR & RYI
According to the Zacks Industry classification, Steel is broadly grouped under Basic Materials, one of the 16 broad Zacks sectors. Below we briefly discuss the broader sectors’ earnings trend so far in the Apr–Jun 2016 quarter.
As of Aug 5, roughly 95% of Basic Materials stocks in the S&P 500 Group reported results for the April–June quarter, recording 11.8% decline in earnings and 9.1% fall in revenue. We note that headwinds like economic sluggishness of major industrial goods’ consumers like China, forex issues and dismal pricing conditions in energy & mining markets might limit growth. Considering these headwinds, earnings for the basic materials stocks in the S&P 500 Group are predicted to decline 11.7%, while revenue will likely fall 7.6%.
What’s in Store for 2 Steel Stocks, FSTR & RYI, for Apr–Jun ‘16 Quarter?
Below we discuss briefly the expectations from the upcoming results (April–June quarter) for two steel stocks:
LB Foster Co. (FSTR - Free Report) : This steel stock is slated to release its second-quarter 2016 results on Aug 9, before the market opens. In the four trailing quarters, the company reported lower-than-expected results with an average negative earnings surprise of 79.35%.
FOSTER LB CO Price and EPS Surprise
FOSTER LB CO Price and EPS Surprise | FOSTER LB CO Quote
Our proven model does not conclusively show that LB Foster Co. will be able to pull an earnings surprise this quarter. This is because the company lacks the right combination of two key ingredients — a positive Earnings ESP (the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate) and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold). The company currently carries a Zacks Rank #4 (Sell) and a 0.00% Earnings ESP. Over the last 60 days, the Zacks Consensus Estimate for the stock has decreased 29.6% to 19 cents per share for the second quarter.
Note that we caution against stocks with Zacks Rank #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Ryerson Holding Corporation (RYI - Free Report) : This steel company is slated to release its second-quarter 2016 results on Aug 9, after the market closes. The company reported lower-than-expected results in one of the four trailing quarters, while posting better-than-expected results in three. Average earnings surprise was a positive 118.19%.
RYERSON HOLDING Price and EPS Surprise
RYERSON HOLDING Price and EPS Surprise | RYERSON HOLDING Quote
Our proven model conclusively shows that Ryerson Holding will likely beat earnings this quarter because it currently carries a Zacks Rank #1 and a +8.70% Earnings ESP. The Zacks Consensus Estimate for the stock is currently pegged at 46 cents per share for second-quarter 2016.
Stay tuned! Check back on our full write-up on earnings release of LB Foster Co.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report