How Analysts Are Rating Steel Dynamics ahead of Its 3Q17 Earnings

Steel Dynamics (STLD), the third largest US-based steel producer (AKS) (XME) after Nucor (NUE) and U.S. Steel (X), is expected to release its 3Q17 earnings on October 18 after markets close. It will hold its earnings conference call the next day.

Steel Dynamics has received a “strong buy” rating from three analysts, while five analysts have issued the stock a “buy” rating. The remaining five analysts have a “hold” ratings on the stock, and none has given STLD a “sell” rating.

The stock has received a mean consensus price target of $40.14 from the 13 analysts polled by Thomson Reuters on October 16. Based on that day’s closing price, this represents a potential upside of 10.9%.

According to Thomson Reuters, analysts expect Steel Dynamics to post revenue of $2.38 billion in 3Q17, compared with ~$2.39 billion in 2Q17 and ~$2.10 billion in 3Q16. While Steel Dynamics’ 3Q17 revenues are expected to be slightly lower than in 2Q17, analysts expect its profits to rise during the period.

Analysts expect Steel Dynamics to post adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $361 million in 3Q17. It generated adjusted EBITDA of $339 million in 2Q17 and $358 million in 3Q16. 

The company expects its 3Q17 EPS (earnings per share) to be roughly equal to what we saw in 2Q17. Check out the series What Analysts Project for Steel Dynamics’ 3Q17 Earnings for a detailed analysis of Steel Dynamics’ 3Q17 earnings estimates.

In the next part, we’ll assess Nucor.