Usually, a winning earnings report is good for a few extra percentage points in a stock’s share price. Steel Dynamics (NASDAQ:STLD) found out as much in Thursday’s trading, adding just under 5% thanks to a mostly solid earnings report.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
There were several high points to the released report, starting with adjusted earnings per share that turned out well above analyst estimates. Steel Dynamics turned in $4.01 per share against analyst estimates that looked for just $3.59 per share. Further, Steel Dynamics sent out ferrous shipments that were up 15% against this time last year, and nonferrous shipments were up an additional 9.5%. Income derived from metals recycling exploded, reaching $345 million and almost doubling the figures seen in the fourth quarter. Steel Dynamics topped this all off with record-breaking metal shipments.
However, all wasn’t as well as it might have been. Steel Dynamics’ revenue levels overall missed estimates, coming in at $4.89 billion against analyst expectations looking for $4.95 billion. Further, overall revenue was down 12.2% against this time last year. But Steel Dynamics balanced this shortfall out with some inspirational guidance, expecting demand for “lower-carbon emission, U.S.-produced steel products” to rise in 2023 and support overall pricing levels.
Analysts are less certain about that outlook. Current analyst consensus calls Steel Dynamics stock a Hold, with two Buy ratings against one Sell and five Holds. Moreover, its average price target of $104.67 gives it 6.1% downside risk.
