[ad_1]
Steel Dynamics, Inc. STLD logged a net income of $914.3 million or $5.03 per share in third-quarter 2022 compared with $990.8 million or $4.85 in the year-ago quarter.
Barring one-time items, adjusted earnings per share came in at $5.46, topping the Zacks Consensus Estimate of $4.97.
Net sales in the quarter increased roughly 11% year over year to a record $5,651.7 million. The figure beat the Zacks Consensus Estimate of $5,478.4 million.
Steel Dynamics, Inc. Price, Consensus and EPS Surprise
Steel Dynamics, Inc. price-consensus-eps-surprise-chart | Steel Dynamics, Inc. Quote
Segment Highlights
Net sales in the company’s steel operations rose around 1% year over year to $3,720.8 million in the reported quarter. Operating income fell roughly 51% year over year to $658.3 million. The average product selling price for the unit fell around 11% year over year to $1,381 per ton in the reported quarter. The company registered record steel shipments of around 3.2 million tons in the reported quarter, driven by steady steel demand.
The company’s steel fabrication operations raked in sales of around $1,140.3 million, up around 131% year over year. The segment posted an operating income of $676.8 million, up from an operating income of $89.4 million in the year-ago quarter. The company witnessed strong demand from the non-residential construction market.
Net sales in metals recycling operations declined around 20% year over year to $472.1 million. Operating income fell roughly 79% year over year to $9.9 million.
Financial Position
Steel Dynamics ended the quarter with cash and cash equivalents of $1,420.5 million, up around 30% from the year-ago quarter’s levels. Long-term debt was $3,012.1 million, essentially flat year over year.
The company generated $1.5 billion of cash flow from operations in the third quarter. It also repurchased $482 million of its common stock during the quarter.
Outlook
Steel Dynamics stated that customer order entry activity remains healthy across its businesses. It sees seasonally moderated volume in steel and metals recycling operations in the coming months. Its order activity and backlog remain strong notwithstanding softer flat rolled steel pricing.
The company expects steel consumption in North America to remain steady. It also anticipates demand for lower-carbon, U.S.-produced steel products and lower imports to support steel pricing. Moreover, order backlog in its steel fabrication operations remains historically high based on volume and forward pricing levels.
Price Performance
Shares of Steel Dynamics have gained 35.8% in the past year against a 16.5% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Steel Dynamics currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Albemarle Corporation ALB, Sociedad Quimica y Minera de Chile S.A. SQM and Ryerson Holding Corporation RYI.
Albemarle, currently sporting a Zacks Rank #1 (Strong Buy), has a projected earnings growth rate of 426.7% for the current year. The Zacks Consensus Estimate for ALB’s current-year earnings has been revised 5% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 24.2%, on average. ALB has gained around 10% in a year.
Sociedad has a projected earnings growth rate of 530.7% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 2.1% upward in the past 60 days.
Sociedad has a trailing four-quarter earnings surprise of roughly 27.2%. SQM has rallied roughly 70% in a year. The company currently carries a Zacks Rank #1.
Ryerson Holding, currently carrying a Zacks Rank #1, has an expected earnings growth rate of 74.2% for the current year. The consensus estimate for RYI’s earnings for the current year has been revised 3.2% upward in the past 60 days.
Ryerson Holding’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 28.9%. RYI has gained around 22% over a year.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don’t miss your chance to download Zacks’ top 5 stocks for the electric vehicle revolution at no cost and with no obligation.>>Send me my free report on the top 5 EV stocks
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Steel Dynamics, Inc. (STLD): Free Stock Analysis Report
Albemarle Corporation (ALB): Free Stock Analysis Report
Sociedad Quimica y Minera S.A. (SQM): Free Stock Analysis Report
Ryerson Holding Corporation (RYI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
[ad_2]
Image and article originally from www.nasdaq.com. Read the original article here.