- Steel Dynamics‘ first quarter Adjusted Ebitda surpassed estimates, reaching $878.6 million against the estimate of $861.6 million.
- The reported Earnings Per Share (EPS) is $3.67.
- Net sales amounted to $4.69 billion, slightly below the estimated $4.74 billion.
- Steel net sales were $3.37 billion, not too far off from the estimated $3.39 billion.
- Steel fabrication net sales, which sat at $447.2 million, fell short of the projected $462 million.
- Metals recycling net sales exceeded expectations, totalling $569.5 million against the estimate of $539.7 million.
- Other products net sales were at $311.1 million, just slightly below the estimated $312.5 million.
- Ferrous shipments reached 1.45 million tons, greatly beating the estimate of 529,780 tons.
- Nonferrous shipments also exceeded expectations at 289.44 million pounds, against an estimate of 278.82 million pounds.
- Steel fabrication shipments came to 143,842 tons, near the estimated 145,252 tons.
- The cash flow from operations was lower than expected, at $355.2 million instead of the estimated $426.2 million.
- An increase in earnings over the previous quarter is attributed to the steel and metals recycling businesses, alongside continued strong results from the steel fabrication operations.
- Analysts have presented mixed opinions, with 3 buys, 6 holds, and 4 sells.
Steel Dynamics on Smartkarma
Analyst coverage of Steel Dynamics on Smartkarma has been quite bullish, as highlighted by reports from Baptista Research. In their report titled “Steel Dynamics: Can The Robust Demand and Favorable Market Conditions Catalyze Growth in 2024? – Major Drivers,” the investment thesis revolves around the company’s strong operational performance and strategic advantages over competitors. Steel Dynamics boasted record safety achievements and impressive steel shipments, reaching 12.8 million tons in the Q4 and FY2023 earnings call. The company also reported its second-best year for revenues at $18.8 billion and cash flow from operations at $3.5 billion.
Another report from Baptista Research, titled “Steel Dynamics Inc.: Transformative Growth Initiatives Unveiled! – Major Drivers,” provides insights on the company’s performance. Despite mixed results in the quarter, with revenues surpassing expectations but earnings falling short, Steel Dynamics, Inc. showed resilience. The third quarter saw revenues of $4.6 billion and operating income of $734 million, slightly lower than the previous quarter due to pricing challenges in steel and steel fabrication. The company’s steel operations remained robust, generating an operating income of $474 million in the third quarter.
A look at Steel Dynamics Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Steel Dynamics, Inc. is positioned for strong long-term growth, according to Smartkarma Smart Scores. With top marks in Growth and Momentum, the company is showing robust potential for expansion and market performance. Utilizing a diversified approach as a carbon-steel producer and metals recycler in the U.S., Steel Dynamics is well-positioned to capitalize on increasing demand in the steel industry. Additionally, the company’s high scores in Resilience indicate a solid ability to weather economic fluctuations, providing a stable foundation for future growth.
While Steel Dynamics scores lower in Value and Dividend factors, the company’s strengths in Growth and Momentum overshadow these aspects, highlighting a positive long-term outlook. As a leading player in the industry with a wide range of products including flat rolled steel sheet and structural beams, Steel Dynamics is set to maintain its upward trajectory and deliver value to investors in the coming years.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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