Steel Dynamics Shares Slide on This Weak Earnings Forecast

Steel Dynamics Inc. (NASDAQ:STLD) on Monday pre-announced third-quarter net income much below what analysts had been expecting. The steel maker said it expects to earn 18 cents to 22 cents per share in the third quarter, below analyst’s expectation of 29 cents per share. Shares traded down about 1% to $11.18.

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Steel Dynamics said “The shortfall is because of a substantial drop in earnings from flat rolled steel. Demand in July and August did not improve and pricing remained challenging”. The company trades at a P/E ratio of about 11 which is higher than it’s peers. The company also trades at a sales multiple of 0.34 which is lower than its industry rivals.

On the technical front shares trade well below their declining 200 day and 50 day moving average. The MACD is about to show a bearish crossover while RSI is pointing down at 36.

Keep your eye on the steel maker stocks today: AK Steel Holding Corp (NYSE:AKS), United States Steel Corp. (NYSE:X), Nucor Corporation (NYSE:NUE), Ternium S.A. (NYSE:TX), Commercial Metals Company (NYSE:CMC), Universal Stainless & Alloy Products (NASDAQ:USAP), Allegheny Tech. Inc. (NYSE:ATI), Ampco-Pittsburgh Corp. (NYSE:AP), ArcelorMittal (NYSE:MT), and Schnitzer Steel Industries, Inc. (NASDAQ:SCHN).

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