Steel Dynamics’ first-quarter earnings

Steel Dynamics (STLD) has scheduled the release of its first-quarter earnings results for April 22. The company expects its first-quarter EPS to be between $0.88 and $0.92. It posted EPS of $1.17 in the fourth quarter and $0.96 in the first quarter of 2018.

Steel Dynamics’ first-quarter guidance has disappointed the market, as the company expects a year-over-year fall in its earnings. Before we analyze what analysts are projecting for Steel Dynamics’ first-quarter earnings, let’s do a quick recap of its recent financial performance and price action.

Steel Dynamics’ Q1 Earnings: What’s the Word on Wall Street?

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2018 performance

Last year, Steel Dynamics posted record shipments, earnings, and operating cash flows. However, its stock tumbled more than 30% in 2019. Other steel stocks were also in the red despite the Section 232 tariffs. Nucor (NUE) and AK Steel (AKS) saw negative price action of 18.5% and 60.2%, respectively, last year. Cleveland-Cliffs (CLF) outperformed US steel stocks last year. This year has been better for Steel Dynamics, whose stock is up 14.5% year-to-date.

Analysts’ estimates

Analysts polled by Thomson Reuters expect Steel Dynamics to post revenue of $2.83 billion in the first quarter. It posted revenues of $2.90 billion in the fourth quarter and $2.60 billion in the first quarter of 2018. Analysts expect Steel Dynamics to post EPS of $0.98, higher than the company’s guidance, in the first quarter.

Steel Dynamics has received “buy” or higher ratings from ten analysts, while the remaining four polled by Thomson Reuters on April 17 have rated it as a “hold.” Its mean consensus target price implies a potential upside of 20.1%.

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