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 ...

FORT WAYNE, Ind., Sept. 5, 2024 /PRNewswire/ -- Steel Dynamics, Inc. (NASDAQ/GS: STLD) today petitioned the Department of Commerce (DOC) and the U.S. International Trade Commission (ITC) to apply antidumping duties against imports of corrosion resistant flat rolled steel (CORE) from Australia, Brazil, Canada, Mexico, the Netherlands, South Africa, Taiwan, Turkey, UAE, and Vietnam, and countervailing duties against imports of CORE from Brazil, Canada, Mexico, and Vietnam. The company was joined by four other ...

Core Viewpoint - Steel Dynamics (STLD) is facing a challenging financial outlook with expected declines in both earnings and revenue for the upcoming quarter and full year, indicating potential difficulties in the company's performance [1][2]. Financial Performance - The recent trading session closed at $113.12, reflecting a -0.74% change from the previous day, underperforming the S&P 500's loss of 0.16% [1]. - Over the past month, shares of Steel Dynamics have decreased by 6.88%, contrasting with a 0.19% gain in the Basic Materials sector and a 3.64% gain in the S&P 500 [1]. - The upcoming earnings report is anticipated to show an EPS of $2.22, which represents a 36.02% decrease from the same quarter last year, with revenue expected to be $4.3 billion, down 6.28% year-over-year [1]. Full Year Estimates - For the full year, analysts project earnings of $10.74 per share and revenue of $17.76 billion, indicating declines of -28.16% and -5.53% respectively compared to the previous year [2]. Analyst Sentiment - Changes in analyst estimates are crucial as they reflect the evolving business trends; positive revisions indicate confidence in the company's performance [2]. - The Zacks Rank system currently rates Steel Dynamics at 3 (Hold), with a recent 5.42% decline in the Zacks Consensus EPS estimate [3]. Valuation Metrics - Steel Dynamics has a Forward P/E ratio of 10.61, which is lower than the industry average of 13.05, suggesting a valuation discount [3]. - The Steel - Producers industry is ranked 176 in the Zacks Industry Rank, placing it in the bottom 31% of over 250 industries [3].

FORT WAYNE, Ind., Aug. 16, 2024 /PRNewswire/ -- Steel Dynamics, Inc. (NASDAQ/GS: STLD) today announced that the company's board of directors declared a third quarter cash dividend of $0.46 per common share. The dividend is payable to shareholders of record at the close of business on September 30, 2024 and is payable on or about October 11, 2024.About Steel Dynamics, Inc.Steel Dynamics is one of the largest domestic steel producers and metals recyclers in North America, based on estimated annual steelmaking ...

It has been about a month since the last earnings report for Steel Dynamics (STLD) . Shares have lost about 8.6% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Steel Dynamics due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Steel Dynamics’ Q2 Earnings and Sales Be ...

Financial Performance - In Q2 2024, Steel Dynamics achieved steel shipments of 3.2 million tons, with a solid demand compared to Q2 2023[62]. - Consolidated operating income decreased by $504.6 million, or 47%, to $559.1 million in Q2 2024, attributed to a contraction in metal spread across all platforms[63]. - Net income attributable to Steel Dynamics decreased by $384.1 million, or 47%, to $428.0 million in Q2 2024, consistent with the decline in operating income[63]. - For the first half of 2024, consolidated operating income decreased by $589.0 million, or 31%, to $1.3 billion compared to the same period in 2023[64]. Sales and Shipments - Steel Operations Segment net sales in Q2 2024 decreased by 10% to $3.25 billion, driven by lower average selling prices and shipments[70]. - The average selling price for the steel segment decreased by 9%, or $111 per ton, in Q2 2024 compared to Q2 2023[70]. - Total ferrous metal external shipments for Q2 2024 were 591,120 gross tons, a 2% increase from 577,979 gross tons in Q2 2023[76]. - Nonferrous metal external shipments increased by 4% to 254,353 thousand pounds in Q2 2024 compared to 244,360 thousand pounds in Q2 2023[76]. Operating Income - Operating income for the steel operations decreased by 37% to $438.6 million in Q2 2024, reflecting metal spread compression[71]. - Operating income for metals recycling operations decreased by 14% to $28.2 million in Q2 2024, down from $32.8 million in Q2 2023[76]. - Steel fabrication operations net sales decreased by 39% in Q2 2024, with average selling prices dropping by $1,406 per ton, or 32%[80]. - Operating income for steel fabrication operations fell by 61% to $180.7 million in Q2 2024, compared to $462.1 million in Q2 2023[81]. Expenses and Liquidity - Selling, general and administrative expenses increased by 13% to $160.0 million in Q2 2024, representing 3.5% of net sales[85]. - Interest expense decreased by 43% to $24.7 million in the first half of 2024, down from $43.3 million in the same period in 2023[92]. - Total liquidity as of June 30, 2024, was $2.67 billion, including cash and equivalents of $829.98 million[96]. Capital Investments and Shareholder Returns - Capital investments in the first half of 2024 amounted to $793.5 million, up from $584.6 million in the same period in 2023[102]. - Quarterly cash dividend increased by 8% to $0.46 per share in Q1 2024, resulting in declared cash dividends of $144.2 million in the first half of 2024[103]. - The board of directors authorized a share repurchase program of up to $1.5 billion, with $607.1 million and $734.2 million repurchased in the first half of 2024 and 2023, respectively[104]. - As of June 30, 2024, there is $793.2 million remaining available for purchase under the November 2023 share repurchase program[104]. Risk Management - The company believes cash flows from operations and other available funds will be adequate for the next twelve months to meet debt service obligations and capital expenditures[105]. - The company is exposed to market risks related to price fluctuations of raw materials, including metallic raw materials, electricity, and natural gas[106]. - Commitments with suppliers for raw materials include "take or pay" provisions for specified quantities, with some extending up to 28 years for water products[107]. - Fixed price contracts for nonferrous and ferrous metals are in place, with substantial completion expected within the next twelve months[108]. - The risk strategy aims to protect profit margins through base metal financial contracts[108].

Core Viewpoint - Steel Dynamics (STLD) shares have experienced a 25% increase over the past year but have recently pulled back over 10% due to investor concerns about a slowing economy. Despite disappointing performance since a previous "buy" recommendation, the company is expected to benefit from solid Q2 results and long-term tailwinds, suggesting that the current dip presents a buying opportunity [2][4]. Financial Performance - In Q2, Steel Dynamics reported earnings of $2.72, beating consensus estimates by $0.05, although revenue declined by 9% year-over-year to $4.6 billion due to a moderated steel market. Earnings were down 43% from the previous year, reflecting lower margins as steel prices fell [4][6]. - For the first half of the year, STLD earned $1 billion, significantly higher than the full-year earnings of $671 million in 2019 [5]. Market Dynamics - The company noted that underlying steel demand is "stable," but customers are reducing inventories in anticipation of falling prices. This behavior has led to low channel inventories, which could create positive pricing momentum if demand proves resilient [6][7]. - The macroeconomic outlook for steel demand remains solid, supported by government programs such as the Inflation Reduction Act and bipartisan infrastructure bill, which are expected to sustain elevated steel demand even if the economy slows [7]. Supply Constraints - Steel supply is constrained due to the continuation of tariffs from the previous administration, which is expected to remain regardless of the outcome of the upcoming presidential election. This limitation on supply, combined with government support for demand, is likely to stabilize steel demand over the next 12-18 months [7][8]. Operational Insights - Q2 results indicated a decline in operating income by 27% to $442 million, with fabricated steel profits falling 61% to $181 million. However, there were signs of stabilization, particularly in the fabricated steel unit, which saw a sequential increase in shipments [8][9]. - The company is planning to launch a $2.7 billion aluminum plant by mid-2025, which is expected to significantly enhance free cash flow as capital expenditures decrease and revenue increases [9][10]. Shareholder Returns - Steel Dynamics has a strong balance sheet with $1.5 billion in cash and $3.1 billion in debt, allowing it to return capital to shareholders through share repurchases and dividends. In Q2, the company repurchased $309 million in shares, reducing the share count by 1.5% [10][11]. Future Outlook - The earnings forecast for 2024 has been adjusted to a range of $13.00-$14.00 per share, with expectations for H2 earnings to exceed H1 results. The anticipated recovery in demand and inventory normalization could create a constructive backdrop for the latter part of the year and into 2025 [11]. - Shares are currently trading at approximately 9.5 times 2024 earnings, which is considered attractive given the potential for a cyclical recovery. The expected free cash flow could reach $1.7 billion, with shares potentially trading up to $151, and even higher if a cyclical recovery occurs [11].