Schnitzer Steel Industries Inc. (NASDAQ:SCHN) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Schnitzer Steel Industries Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 77.5% to $0.09 in the quarter versus EPS of $0.40 in the year-earlier quarter.
Revenue: Decreased 19.31% to $710 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Schnitzer Steel Industries Inc. reported adjusted EPS income of $0.09 per share. By that measure, the company missed the mean analyst estimate of $0.12. It missed the average revenue estimate of $737.76 million.
Quoting Management: “During the third quarter we achieved higher sales volumes in each of our businesses despite weaker market conditions. Operating income in our Metals Recycling Business was negatively impacted by the significant drop in ferrous selling prices which fell more quickly than purchase prices and offset some of the benefits from the increased volumes. Our major capital projects for fiscal 2013 in Canada and Puerto Rico continue to progress on schedule. In our Auto Parts Business, seasonal trends contributed to improved sequential results for stores owned more than one year and the integration of our 11 new sites added this fiscal year are on track. In our Steel Manufacturing Business, higher sales volumes reflected, in part, a market environment that is improving,” said Tamara Lundgren, President and Chief Executive Officer. “We generated positive operating cash flow this quarter which enabled us to continue our growth investments and capital allocation priorities while maintaining a healthy balance sheet.”
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