Steel Dynamics Earnings: Everything You Must Know Now

Steel Dynamics Inc. (NASDAQ:STLD) delivered a profit and met 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.

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Steel Dynamics Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 8.7% to $0.21 in the quarter versus EPS of $0.23 in the year-earlier quarter.

Revenue: Decreased 9.4% to $1.8 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Steel Dynamics Inc. reported adjusted EPS income of $0.21 per share. By that measure, the company missed the mean analyst estimate of $0.21. It missed the average revenue estimate of $1.81 billion.

Quoting Management: “The first quarter remained challenging from a market perspective, as customer confidence and buying patterns continued to be impacted by global economic uncertainty;” said President and Chief Executive Officer, Mark Millett, “but the team did a great job. We hit several production records, and did so safely, as safety records improved from levels already better than industry standards. We are pleased the first quarter financial performance was at the upper range of our March guidance. Operating income improved slightly to $96 million compared to last quarter’s results.”

Key Stats (on next page)…

Revenue increased 5.32% from $1.71 billion in the previous quarter. EPS increased 5% from $0.20 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.32 to a profit $0.3. For the current year, the average estimate has moved down from a profit of $1.23 to a profit of $1.12 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)