Steel Dynamics (STLD) came out with quarterly earnings of $2.05 per share, beating the Zacks Consensus Estimate of $1.98 per share. This compares to earnings of $3.47 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.54%. A quarter ago, it was expected that this steel producer and metals recycler would post earnings of $2.67 per share when it actually produced earnings of $2.72, delivering a surprise of 1.87%.Over the last fou ...

Financial Performance - Steel shipments for Q3 2024 were 3.2 million tons, with net sales of $4.3 billion, operating income of $395 million, and net income of $318 million [1] - Adjusted EBITDA for Q3 2024 was $557 million, with cash flow from operations of $760 million [1] - The company repurchased $310 million of its common stock, representing 1.6% of outstanding shares [1] - Net income for the first nine months of 2024 was $1.3 billion, a decline from $2.0 billion in the same period in 2023 [3] - Operating income for the first nine months of 2024 decreased by 35% to $1.7 billion compared to the same period in 2023 [3] Operational Highlights - The Sinton Texas Flat Roll Steel Mill operated at 72% of its capability in September 2024, excluding scheduled downtime [2] - Steel fabrication operations achieved operating income of $166 million in Q3 2024, with steady demand and a 5% softening in average realized pricing [2] - The company's metals recycling operations saw a decline in operating income to $12 million in Q3 2024 due to softer demand and a $10 million unrealized copper hedging loss [2] - The company's steel operations realized a slight improvement in metal spread as scrap pricing declined more than average realized pricing [1] Market and Demand Outlook - Underlying steel demand remained stable in Q3 2024, with flat rolled steel prices stabilizing and improving later in the quarter [1] - The company expects steel pricing to recover in 2025 due to anticipated lower domestic interest rates, onshoring of manufacturing, and infrastructure investments [4] - The company's new value-added flat rolled steel coating lines are expected to contribute to earnings in 2025, with higher-margin products already representing over 65% of steel revenues [4] - The aluminum flat rolled products mill is expected to begin operations in mid-2025, targeting the sustainable beverage can and packaging industry, as well as automotive, industrial, and construction sectors [4] Capital Allocation and Investments - The company invested $621 million in internal growth initiatives in Q3 2024 and distributed $381 million to shareholders through dividends and share repurchases [1] - For the first nine months of 2024, the company invested $1.4 billion in capital investments and repurchased $917 million of its common stock, representing 4.5% of outstanding shares [3] - The company maintains strong liquidity of $3.1 billion as of September 30, 2024 [1] Segment Performance - Steel operations generated $305 million in operating income in Q3 2024, with average external product selling prices decreasing by $79 per ton sequentially to $1,059 per ton [2] - Steel fabrication operations achieved $166 million in operating income in Q3 2024, with steady demand and a 5% softening in average realized pricing [2] - Metals recycling operations saw a decline in operating income to $12 million in Q3 2024 due to softer demand and a $10 million unrealized copper hedging loss [2]

Steel Dynamics, Inc. (STLD) is set to release third-quarter 2024 results after the closing bell on Oct. 16.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Steel Dynamics’ earnings beat the Zacks Consensus Estimate in two of the last four quarters while missed twice. It has a trailing four-quarter earnings surprise of roughly 1.1%, on average. The company posted an earnings surprise of around 1.9% in the last reported quarter. Its third-quarter results are likely to have been impacte ...

Core Insights - Analysts project Steel Dynamics (STLD) will report quarterly earnings of $1.98 per share, a decline of 42.9% year over year, with revenues expected to reach $4.25 billion, down 7.4% from the same quarter last year [1] - The consensus EPS estimate has been revised downward by 15.9% in the past 30 days, indicating a reassessment by covering analysts [1] - The correlation between earnings estimate revisions and short-term stock price performance is emphasized as a significant indicator for investor actions [1] Revenue and Sales Estimates - 'External Net Sales- Steel' is estimated at $2.94 billion, reflecting a year-over-year decline of 6.3% [2] - 'External net sales- Steel Fabrication' is projected to reach $444.09 million, indicating a year-over-year decrease of 29.5% [2] - 'External net sales- Metals Recycling' is forecasted at $555.76 million, showing a year-over-year increase of 6.7% [2] Additional Key Metrics - 'External net sales- All Other' is expected to be $298.80 million, with a slight year-over-year change of -0.3% [3] - The estimated 'Average External Sales Price (Per ton) Shipped - Steel' is $1,046.43, down from $1,191 in the previous year [3] - The consensus for 'Average Sales Price (Per ton) Shipped - Steel Fabrication' is $2,864.09, compared to $3,916 last year [3] - 'Shipments in Tons - Steel Fabrication Segment' are expected to be 155.50 KTon, down from 161.7 KTon year-over-year [3] - 'Average Ferrous Cost (Per ton melted)' is projected at $362.66, down from $405 last year [3] Shipment Estimates - 'Shipments in Tons - Flat Roll shipments' are estimated at 2,692.82 KTon, compared to 2,192.27 KTon last year [4] - 'Shipments in Tons - Metals Recycling - Ferrous' is expected to be 1,483.17 KTon, slightly up from 1,442.96 KTon in the same quarter last year [4] - 'Shipments in Tons - Flat Roll shipments - Butler, Columbus and Sinton' are projected at 1,954.70 KTon, compared to 1,740.13 KTon last year [4] - 'Shipments in Tons - Long Product shipments - Engineered Bar Products Division' is expected to reach 191.16 KTon, down from 201.9 KTon year-over-year [4] Stock Performance - Steel Dynamics shares have increased by 16.2% in the past month, outperforming the Zacks S&P 500 composite, which rose by 5.4% [5] - The company holds a Zacks Rank 3 (Hold), indicating it is expected to closely follow overall market performance in the near term [5]

Core Viewpoint - Steel Dynamics (STLD) is anticipated to report a year-over-year decline in earnings due to lower revenues, with the earnings report expected on October 16, 2024 [1][2] Earnings Expectations - The consensus estimate for quarterly earnings is $1.98 per share, reflecting a year-over-year decrease of 42.9% [2] - Expected revenues are projected at $4.25 billion, down 7.4% from the same quarter last year [2] Estimate Revisions - The consensus EPS estimate has been revised 13.6% lower in the last 30 days, indicating a reassessment by analysts [3] - The Most Accurate Estimate aligns with the Zacks Consensus Estimate, suggesting no recent differing views from analysts [6] Earnings Surprise Prediction - The Earnings ESP for Steel Dynamics is 0%, indicating no predictive advantage for an earnings beat [7] - The stock currently holds a Zacks Rank of 3, making it challenging to predict a consensus EPS beat [7] Historical Performance - In the last reported quarter, Steel Dynamics exceeded the expected earnings of $2.67 per share by delivering $2.72, resulting in a surprise of +1.87% [8] - Over the past four quarters, the company has beaten consensus EPS estimates twice [8] Conclusion - An earnings beat or miss may not solely dictate stock movement, as other factors can influence investor sentiment [9] - Steel Dynamics does not appear to be a strong candidate for an earnings beat, but other factors should also be considered for investment decisions [9]

In the latest market close, Steel Dynamics (STLD) reached $128.22, with a +0.53% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 0.9% for the day. Elsewhere, the Dow saw an upswing of 0.81%, while the tech-heavy Nasdaq appreciated by 1.22%.Heading into today, shares of the steel producer and metals recycler had gained 14.57% over the past month, outpacing the Basic Materials sector's gain of 7.23% and the S&P 500's gain of 3.15% in that time.Investors w ...

Wabash National Corporation (WNC) , a leading semi-trailer manufacturer in North America, has entered into a 10-year strategic agreement with Steel Dynamics, Inc. (STLD) , a major steel producer and recycler in the region. The partnership ensures a steady supply of key steel components, such as hot-rolled, galvanized and painted steel coils, as well as steel cross members, for Wabash’s range of transportation solutions, including van trailers, tank trailers, platform trailers and truck bodies.Per Richard Ma ...

Group 1 - Steel Dynamics (STLD) stock closed at $123.34, reflecting a -1.07% change from the previous day, underperforming the S&P 500's daily loss of 0.19% [1] - Over the past month, Steel Dynamics shares increased by 2.69%, which is below the Basic Materials sector's gain of 3.7% but above the S&P 500's gain of 1.95% [1] - The upcoming earnings report on October 16, 2024, is expected to show an EPS of $1.94, a decline of 44.09% year-over-year, with projected quarterly revenue of $4.25 billion, down 7.35% from the previous year [1] Group 2 - For the full year, earnings are projected at $10.32 per share and revenue at $17.64 billion, reflecting declines of -30.97% and -6.16% respectively from the prior year [2] - Recent analyst estimate revisions for Steel Dynamics indicate short-term business trends, with positive revisions seen as a favorable sign for the company's outlook [2] - The Zacks Rank system, which assesses stock performance based on estimate changes, currently ranks Steel Dynamics at 3 (Hold) [3] Group 3 - Steel Dynamics has a Forward P/E ratio of 12.09, aligning with the industry average, suggesting no significant deviation in valuation [3] - The Steel - Producers industry is part of the Basic Materials sector and currently holds a Zacks Industry Rank of 150, placing it in the bottom 41% of over 250 industries [3] - The Zacks Industry Rank indicates that the top 50% of rated industries outperform the bottom half by a factor of 2 to 1 [4]

Earnings Guidance - Steel Dynamics, Inc. (STLD) has issued earnings guidance for Q3 2024 in the range of $1.94-$1.98 per share, a decline from $2.72 per share in Q2 2024 and $3.47 in Q3 2023 [1] - The profitability of STLD's steel operations is expected to be significantly lower than in Q2 due to reduced average realized pricing in flat rolled operations, with approximately 80% of this business being contract-based and linked to lagging pricing indices [1] Steel Operations - Flat rolled steel prices have stabilized and are showing improvement, with consistent underlying demand [1] - The metals recycling division's earnings for Q3 2024 are anticipated to align with Q2 results, as steady volumes offset slightly lower realized pricing [1] Steel Fabrication Segment - Earnings in the steel fabrication segment are forecasted to be moderately lower than the previous quarter due to a slight dip in average realized pricing, but the order backlog remains steady and extends into Q1 2025 [2] - Current order activity is stable, and demand is expected to grow in 2025, driven by a decline in interest rates, the U.S. infrastructure program, and increasing onshoring efforts [2] Stock Repurchase and Performance - Steel Dynamics has repurchased $307 million worth of its common stock through September 11, 2024, demonstrating confidence in the company's earnings outlook and cash flow [2] - Shares of Steel Dynamics have gained 13.1% in the past year, contrasting with a 14.3% decline in its industry [2] Zacks Rank and Comparisons - Steel Dynamics currently holds a Zacks Rank 3 (Hold) [3] - Better-ranked stocks in the Basic Materials space include Hawkins, Inc. (HWKN), Carpenter Technology Corporation (CRS), and Eldorado Gold Corporation (EGO), each with a Zacks Rank 1 (Strong Buy) [3] Earnings Estimates for Comparables - The Zacks Consensus Estimate for Hawkins' current fiscal-year earnings is $4.14 per share, indicating a rise of 15.3% from the previous year, with a stock rally of around 95% in the past year [3] - Carpenter Technology's current-year earnings estimate is $6.06 per share, reflecting a 27.9% year-over-year rise, with a stock surge of nearly 108.8% in the past year [4] - Eldorado Gold's current-year earnings estimate is $1.35 per share, indicating a year-over-year rise of 136.8%, with shares surging nearly 75.3% in the past year [4]

In the latest trading session, Steel Dynamics (STLD) closed at $108.74, marking a -1.81% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.45%. Meanwhile, the Dow lost 0.23%, and the Nasdaq, a tech-heavy index, added 0.84%.The steel producer and metals recycler's shares have seen a decrease of 4.51% over the last month, not keeping up with the Basic Materials sector's loss of 0.34% and the S&P 500's gain of 2.54%.The investment community will be closely monitoring ...