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National Steel's (SID) Q4 Earnings & Sales Beat Estimates
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National Steel Company (SID - Free Report) delivered fourth-quarter 2019 net profit of R$1,134 million ($275.5 million) compared with the R$1,772 ($465.2 million) recorded in the prior-year quarter. The company reported earnings per share of 20 cents in the reported quarter, beating the Zacks Consensus Estimate of 16 cents. The company had posted a profit per share of 32 cents in the year-ago period.
Revenues
In the December-end quarter, the Brazilian steelmaker’s net revenues came in at R$6,524 million ($1,584.8 million), marking a year-over-year rise of 7.8%. Also, the revenue figure beat the Zacks Consensus Estimate of $1,412 million. This increase primarily resulted from higher iron-ore sales volume.
Domestic revenues decreased 7% year over year to R$2,761 ($670.7 million). The company’s international business flourished with foreign-market revenues registering growth of 22%, year over year, to R$3,763 million ($914 million), accounting for 57.6% of net revenues.
National Steel Company Price, Consensus and EPS Surprise
Steel: The segment’s revenues totaled R$3,349 million ($813.5 million), down 11.1%, year over year. Production of flat-rolled products decreased 9%, year on year, while manufacturing of long-rolled products went up 15%.
Mining: The segment generated revenues of R$2,522 million ($612.6 million), reflecting a jump of 36.8%, year over year, on higher prices and sales volumes.
Logistics: Revenues came in at R$347 million ($84.3 million), down 26.2% year over year.
Cement: The segment’s revenues totaled R$144 million ($35 million) compared with the R$145 million ($38 million) reported in the year-ago quarter.
Energy: The segment’s revenues were flat at R$103 million ($25 million), year on year.
Margin & Costs
In the fourth quarter, the company’s cost of sales flared up 10.8% year over year to R$4,429 million ($1,075.9 million). Gross profit increased 2.1% year on year to R$2,095 million ($509 million). Gross margin came in at 32% compared with the year-earlier quarter’s 34%.
Selling, General and Administrative expenses came in at R$1,041 million ($252.9 million), reflecting year-over-year growth of 12%. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) moved up 1.3%, year over year, to R$1,580 million ($383.8 million). EBITDA margin was 24.2% in the reported quarter compared with the prior-year quarter’s 25.8%.
Balance Sheet & Cash Flow
The company had cash and cash equivalents of R$1,089 million ($271 million) at the end of 2019, down from the R$2,248 million ($579.2 million) at 2018-end. Net debt to adjusted EBITDA ratio was 3.74 at 2019 end, down from the 4.55 as of 2018 end.
2019 Results
The company reported net profit of R$2,244 million ($558.3 million) compared with R$5,200 million ($1,339 million) in 2018. Net revenues came in at R$ 25,436 million ($6,328.7 million), up 10.7% year over year.
Zacks Rank & Stocks to Consider
National Steel currently carries a Zacks Rank #5 (Strong Sell).
Daqo New Energy has an expected long-term earnings growth rate of 29%. The company’s shares have surged 73.2% in the past year.
Sibanye has an expected long-term earnings growth rate of 20.4%. Its shares have soared 109.5% in a year’s time.
Impala Platinum has a projected long-term earnings growth rate of 26.5%. The company’s shares have appreciated 125.3% over the past year.
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A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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National Steel's (SID) Q4 Earnings & Sales Beat Estimates
National Steel Company (SID - Free Report) delivered fourth-quarter 2019 net profit of R$1,134 million ($275.5 million) compared with the R$1,772 ($465.2 million) recorded in the prior-year quarter. The company reported earnings per share of 20 cents in the reported quarter, beating the Zacks Consensus Estimate of 16 cents. The company had posted a profit per share of 32 cents in the year-ago period.
Revenues
In the December-end quarter, the Brazilian steelmaker’s net revenues came in at R$6,524 million ($1,584.8 million), marking a year-over-year rise of 7.8%. Also, the revenue figure beat the Zacks Consensus Estimate of $1,412 million. This increase primarily resulted from higher iron-ore sales volume.
Domestic revenues decreased 7% year over year to R$2,761 ($670.7 million). The company’s international business flourished with foreign-market revenues registering growth of 22%, year over year, to R$3,763 million ($914 million), accounting for 57.6% of net revenues.
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$3,349 million ($813.5 million), down 11.1%, year over year. Production of flat-rolled products decreased 9%, year on year, while manufacturing of long-rolled products went up 15%.
Mining: The segment generated revenues of R$2,522 million ($612.6 million), reflecting a jump of 36.8%, year over year, on higher prices and sales volumes.
Logistics: Revenues came in at R$347 million ($84.3 million), down 26.2% year over year.
Cement: The segment’s revenues totaled R$144 million ($35 million) compared with the R$145 million ($38 million) reported in the year-ago quarter.
Energy: The segment’s revenues were flat at R$103 million ($25 million), year on year.
Margin & Costs
In the fourth quarter, the company’s cost of sales flared up 10.8% year over year to R$4,429 million ($1,075.9 million). Gross profit increased 2.1% year on year to R$2,095 million ($509 million). Gross margin came in at 32% compared with the year-earlier quarter’s 34%.
Selling, General and Administrative expenses came in at R$1,041 million ($252.9 million), reflecting year-over-year growth of 12%. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) moved up 1.3%, year over year, to R$1,580 million ($383.8 million). EBITDA margin was 24.2% in the reported quarter compared with the prior-year quarter’s 25.8%.
Balance Sheet & Cash Flow
The company had cash and cash equivalents of R$1,089 million ($271 million) at the end of 2019, down from the R$2,248 million ($579.2 million) at 2018-end. Net debt to adjusted EBITDA ratio was 3.74 at 2019 end, down from the 4.55 as of 2018 end.
2019 Results
The company reported net profit of R$2,244 million ($558.3 million) compared with R$5,200 million ($1,339 million) in 2018. Net revenues came in at R$ 25,436 million ($6,328.7 million), up 10.7% year over year.
Zacks Rank & Stocks to Consider
National Steel currently carries a Zacks Rank #5 (Strong Sell).
Few better-ranked stocks in the basic materials space include Daqo New Energy Corp (DQ - Free Report) , Sibanye Gold Limited (SBSW - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Daqo New Energy has an expected long-term earnings growth rate of 29%. The company’s shares have surged 73.2% in the past year.
Sibanye has an expected long-term earnings growth rate of 20.4%. Its shares have soared 109.5% in a year’s time.
Impala Platinum has a projected long-term earnings growth rate of 26.5%. The company’s shares have appreciated 125.3% over the past year.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>