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Steel Dynamics warned that lower prices and shipments and an unplanned outage at a factory will affect current-quarter earnings.
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The steelmaker sees fourth-quarter profit of $1.26 to $1.30, while Visible Alpha analysts were expecting $1.60.
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However, the company said prices have stabilized and demand remains solid.
Steel Dynamics (STLD) provided lower-than-expected guidance for the current quarter, in part because of a problem with one of its plants. However, shares of the steelmaker recently edged higher as the company gave a positive outlook for the industry environment.
The company reported that it expects fourth-quarter earnings per share (EPS) in a range of $1.26 to $1.30. Analysts surveyed by Visible Alpha were looking for $1.60.
Steel Dynamics explained that per-share profitability would be "meaningfully lower" than the $2.05 produced in the third quarter because of "lower average realized pricing, seasonally lower shipments, and an unplanned outage at the Company's Butler Flat Roll Division further reducing volume by an estimated 50,000 tons.”
Steel Dynamics Says 'Demand Remains Seasonally Steady'
Still, the company noted that flat rolled steel prices have stabilized, and based on solid customer order activity, "demand remains seasonally steady for the primary steel consuming sectors." It added that its customers have been positive about the 2025 business outlook.
Steel Dynamics said that because of its confidence in its earnings and cash flow generation ahead, it has repurchased $250 million, or just more than one percent, of its common stock during the fourth quarter through Dec. 10.
Shares of Steel Dynamics, which is scheduled to release its quarterly earnings report on Jan. 22, are up about 4% this year.
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