Based in Fort Wayne, Indiana, Steel Dynamics, Inc. (STLD) is a leading steel producer and metal recycler serving customers across North America. With a market cap of $20.35 billion, Steel Dynamics is known for its innovative and sustainable practices in steel production. The company will announce its fiscal Q2 earnings results after the market closes on Wednesday, July 17.
Ahead of the event, analysts expect Steel Dynamics to report a profit of $2.67 per share, down 44.5% from $4.81 per share in the year-ago quarter. In the last four quarters, the company has missed Wall Street’s bottom-line estimates in three and surpassed in the other.
Its adjusted earnings of $3.67 per share for the last reported quarter beat the consensus estimate by 3.7%. Despite shipment and segment challenges, Steel Dynamics beat earnings expectations thanks to higher selling prices and solid demand, with a positive outlook for domestic steel consumption growth.
For fiscal 2024, analysts expect STLD to report EPS of $11.64, down 22.1% from $14.95 in fiscal 2023.
STLD stock is up 9.7% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 14.5% returns. The stock has also lagged the iShares U.S. Basic Materials ETF’s (IYM) 1.3% return over the same time frame.
STLD reported its Q1 results on Apr. 23. The company's revenue for the period was $4.69 billion, falling short of the anticipated $4.74 billion. The stock declined 2.3% on the earnings release day and decreased 3.2% the following day.
The consensus opinion on Steel Dynamics stock is cautious, with an overall “Hold” rating. Out of 11 analysts covering the stock, 2 advise a “Strong Buy” rating, 7 recommend a “Hold,” and the remaining two analysts suggest a “Strong sell” rating. The average analyst price target for STLD is $134, indicating a potential upside of 3.5% from the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
