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.
Reliance Steel (RS) Beats Earnings & Sales Estimates in Q2
Read MoreHide Full Article
Reliance Steel & Aluminum Co. (RS - Free Report) posted a profit of $230.8 million or $3.16 per share in the second quarter of 2018, reflecting around a 124.1% rise from $103 million or $1.40 a year ago.
Barring one-time items, adjusted earnings were $3.10 per share for the quarter, which exceeded the Zacks Consensus Estimate of $2.71.
The company benefited from positive pricing momentum and continuing solid demand environment. The metal pricing environment drove pricing levels in each month of the quarter, contributing to the company’s earnings. The company saw continued strong demand across aerospace and automotive markets in the quarter.
Reliance Steel recorded net sales of $2.99 billion, up 20.8% year over year. It beat the Zacks Consensus Estimate of $2.98 billion.
Reliance Steel & Aluminum Co. Price, Consensus and EPS Surprise
Overall sales volume went up 2.9% year over year to around 1.6 million tons. Average prices per ton sold rose 18.1% from the prior-year quarter to $1,890.
Financials
Reliance Steel ended the quarter with cash and cash equivalents of $124.3 million, down roughly 15% year over year. Long-term debt was recorded at $1,933 million. Cash flow from operations was $83.7 million in the second quarter.
Reliance Steel repurchased shares worth $50 million in the first half of 2018 and had roughly 7.5 million shares available for repurchase under its share repurchase program at the end of the second quarter. The company also paid $74.6 million in dividends in the quarter under review.
Outlook
Reliance Steel is optimistic about business conditions for third-quarter 2018 and sees continued improvement in the end markets in which it operates. The company expects demand to remain strong in the third quarter.
Reliance Steel expects tons sold to decline 2% to 4% in the third quarter of 2018 on a sequential basis. Average selling price per ton is expected to be up 1% to 3% in the quarter from the second. Additionally, the company expects earnings per share in the band of $2.65 to $2.75 for the third quarter.
Price Performance
Reliance Steel’s shares have moved up 1.1% in the last six months against the industry’s 12.4% decline.
Zacks Rank & Other Stocks to Consider
Reliance Steel currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the basic materials space are Celanese Corporation (CE - Free Report) , Methanex Corporation (MEOH - Free Report) and BHP Billiton Limited (BHP - Free Report) .
Methanex has an expected long-term earnings growth rate of 15% and flaunts a Zacks Rank #1. Its shares have rallied roughly 54.3% in a year’s time.
BHP Billiton has an expected long-term earnings growth rate of 5.3% and sports a Zacks Rank #1. Its shares have shot up roughly 23% over a year.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Image: Bigstock
Reliance Steel (RS) Beats Earnings & Sales Estimates in Q2
Reliance Steel & Aluminum Co. (RS - Free Report) posted a profit of $230.8 million or $3.16 per share in the second quarter of 2018, reflecting around a 124.1% rise from $103 million or $1.40 a year ago.
Barring one-time items, adjusted earnings were $3.10 per share for the quarter, which exceeded the Zacks Consensus Estimate of $2.71.
The company benefited from positive pricing momentum and continuing solid demand environment. The metal pricing environment drove pricing levels in each month of the quarter, contributing to the company’s earnings. The company saw continued strong demand across aerospace and automotive markets in the quarter.
Reliance Steel recorded net sales of $2.99 billion, up 20.8% year over year. It beat the Zacks Consensus Estimate of $2.98 billion.
Reliance Steel & Aluminum Co. Price, Consensus and EPS Surprise
Reliance Steel & Aluminum Co. Price, Consensus and EPS Surprise | Reliance Steel & Aluminum Co. Quote
Volumes and Pricing
Overall sales volume went up 2.9% year over year to around 1.6 million tons. Average prices per ton sold rose 18.1% from the prior-year quarter to $1,890.
Financials
Reliance Steel ended the quarter with cash and cash equivalents of $124.3 million, down roughly 15% year over year. Long-term debt was recorded at $1,933 million. Cash flow from operations was $83.7 million in the second quarter.
Reliance Steel repurchased shares worth $50 million in the first half of 2018 and had roughly 7.5 million shares available for repurchase under its share repurchase program at the end of the second quarter. The company also paid $74.6 million in dividends in the quarter under review.
Outlook
Reliance Steel is optimistic about business conditions for third-quarter 2018 and sees continued improvement in the end markets in which it operates. The company expects demand to remain strong in the third quarter.
Reliance Steel expects tons sold to decline 2% to 4% in the third quarter of 2018 on a sequential basis. Average selling price per ton is expected to be up 1% to 3% in the quarter from the second. Additionally, the company expects earnings per share in the band of $2.65 to $2.75 for the third quarter.
Price Performance
Reliance Steel’s shares have moved up 1.1% in the last six months against the industry’s 12.4% decline.
Zacks Rank & Other Stocks to Consider
Reliance Steel currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the basic materials space are Celanese Corporation (CE - Free Report) , Methanex Corporation (MEOH - Free Report) and BHP Billiton Limited (BHP - Free Report) .
Celanese has an expected long-term earnings growth rate of 9.3% and a Zacks Rank #1 (Strong Buy). The company’s shares have moved up 22.6% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Methanex has an expected long-term earnings growth rate of 15% and flaunts a Zacks Rank #1. Its shares have rallied roughly 54.3% in a year’s time.
BHP Billiton has an expected long-term earnings growth rate of 5.3% and sports a Zacks Rank #1. Its shares have shot up roughly 23% over a year.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>