(RS - Free Report
) is a leading metals service center company engaged in value-added materials management and metals processing services. It distributes metal products including stainless steel, aluminum, brass, copper, titanium and alloy steel to customers across a vast spectrum of industries.
Reliance Steel is gaining from its strategic acquisitions and strong demand for its products across the aerospace and automotive markets. However, he company’s business in the energy markets remain under pressure due to depressed oil prices.
Let’s have a quick look at this metal processor’s second-quarter 2017 release.
Estimate Trend & Surprise History
Investors should note that the earnings estimate for Reliance Steel for the second quarter has been going up over the past one week. Reliance Steel has beat the Zacks Consensus Estimate in 3 of the trailing 4 quarters with an average positive surprise of 4.6%.
Reliance Steel & Aluminum Co. Price and EPS Surprise
Reliance Steel logged earnings of $1.40 per share for the quarter that exceeded the Zacks Consensus Estimate of $1.38.
Reliance Steel recorded net sales of $2,475.2 million, up 12.3% year over year, beating the Zacks Consensus Estimate of $2,416.1 million.
Key Stats/Developments to Note
Reliance Steel is cautiously optimistic about business activity levels in the third quarter of 2017. The company anticipates steady demand in the third quarter except for a decline in shipping volume due to customer shutdowns and vacation schedules. As a result, the company estimates tons sold will be down 3% to 5% in the third quarter. Pricing momentum seems to be positive owing to the recent increases in carbon steel pricing and the potential for lesser imports. Additionally, the company expects earnings per share to be in the band of $1.15-$1.25 for the third quarter.
Reliance Steel currently has a Zacks Rank #3 (Hold), but that could change following the company’s earnings report which was just released.
Reliance Steel’s shares were up 1.2% following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on Reliance Steel’s earnings report!
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