Based in Fort Wayne, Indiana, Steel Dynamics, Inc. (STLD) operates as a steel producer and metal recycler. Valued at a market cap of $19.8 billion, it is one of the most diversified steel companies in the United States and makes and markets steel products, recycles ferrous and nonferrous metals, and fabricates and sells steel joist and decking products. The company is expected to announce its fiscal 2024 Q3 earnings results before the market opens on Wednesday, Oct.16.
Ahead of this event, analysts expect the metal company to report a profit of $1.98 per share, representing a significant decline of 42.9% from $3.47 per share in the year-ago quarter. Moreover, the company has surpassed Wall Street's bottom-line estimates in two of the last four quarters while missing on the other two occasions. In Q2, the company reported an EPS of $2.72, which topped the consensus estimates by a narrow margin of roughly 1.9%.
Over the longer term, analysts project STLD to report an EPS of $10.32 for fiscal 2024, down nearly 31% from $14.95 in fiscal 2023. However, EPS is forecasted to grow marginally to $10.37 in fiscal 2025.
Shares of STLD have gained 8.4% on a YTD basis, underperforming both the S&P 500 Index's ($SPX) 19.9% return and the Materials Select Sector SPDR Fund’s (XLB) 12.7% increase over the same period.
Despite beating Wall Street’s top and bottom line estimates, shares of STLD dropped nearly 2% following its Q2 earnings release on Jul. 17, primarily due to a year-over-year decline in revenues and earnings. This was driven by a 9.2% annual decline in net revenues from steel operations, fueled by a decline in steel pricing and hesitancy in customer orders and a 38% decrease in sales from steel fabrication operations.
Analysts' consensus view on Steel Dynamics’ stock is cautious, with a "Hold" rating overall. Out of 11 analysts covering the stock, three advise a "Strong Buy" rating, seven give a “Hold” rating, and one suggests a “Strong Sell,” This configuration is a little more bullish than three months ago, with two analysts suggesting a "Strong Buy."
The average analyst price target for STLD is $133.30, indicating a potential upside of only 5.7% from the current levels.
On the date of publication, Sohini Mondal 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.
