AKS - Free Post Earnings Research Report: Steel Dynamics' Sales Jumped 10%; EPS Rose 17%
Stock Monitor: AK Steel Holding Post Earnings Reporting
LONDON, UK / ACCESSWIRE / May 02, 2018 / Active-Investors.com has just released a free earnings report on Steel Dynamics, Inc. (NASDAQ: STLD). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=STLD. Steel Dynamics reported its first quarter fiscal 2018 operating and financial results on April 18, 2018. The steel producer and metals recycler delivered record still shipments and beat earnings estimates. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Steel Dynamics most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
Steel Dynamics announced net sales of $2.60 billion in the first quarter 2018, up 10% compared to net sales of $2.37 billion in Q1 2017. The Company's reported numbers were in-line with analysts' estimates of $2.60 billion.
Steel Dynamics reported net income of $228 million, or $0.96 per diluted share, in Q1 2018 compared to net income of $201 million, or $0.82 per diluted share, for Q1 2017. The Company's earnings beat Wall Street's estimates of $0.91 per share.
Segment Results
During Q1 2018, Steel Dynamics had shipments for hot-rolled and P&O of 875,000 tons. The Company had cold-rolled shipments of 134,000 tons, and had coated, which included both galvanized, Galvalume, and painted products, of 734,000 tons.
For Q1 2018, Steel Dynamics' steel shipments increased 7% sequentially to record 2.5 million tons, with growth achieved at each division across the platform. Steel metal spreads expanded meaningfully as the Company's average quarterly sales price increased $61 on a q-o-q basis to $822 per ton, and its average scrap cost consumed only increased $21 to $321 per ton. The result was Q1 2018 steel operating income of $338 million, reflecting sequential growth of 65%.
For Steel Dynamics' metals recycling platform, ferrous metal spread improved in Q1 2018 with a 7% increase in shipments related to higher domestic steel mill utilization, resulting in operating income of $28 million, representing a 24% improvement sequentially. The metals recycling group shipped 65% of their ferrous scrap to the Company's own steel mills, increasing scrap quality, mill efficiency, and reducing working capital requirement.
During Q1 2018, Steel Dynamics' operating income attributable to the Company's flat roll steel operations increased over 70% on sequential basis, driven by metal spread expansion related to higher selling values and a 5% growth in shipments. In the reported quarter, operating income from the Company's long product steel operations increased over 25%, as a result of improved shipments and metal spread expansion, primarily from the company's Engineered Bar Products and Roanoke Bar divisions. Steel Dynamics' steel production utilization rate was 94% in Q1 2018 compared to the estimated domestic steel industry utilization rate of 76%.
For Q1 2018, Steel Dynamics' fabrication operations recorded operating income of $20 million compared to Q4 2017 results of $22 million, as improved average selling values were more than offset by seasonally lower shipments.
Cash Matters
During Q1 2018, Steel Dynamics generated solid cash flow from operations of $178 million. The Company also repurchased $69 million of its common stock in the reported quarter and have $103 million still available pursuant to the $450 million board authorized program, which the Company initiated in October of 2016.
Steel Dynamics maintained liquidity of $2.2 billion at March 31, 2018, with $1 billion in cash and short-term investments, and $1.2 billion of available funding under the Company's revolving credit facility.
Stock Performance Snapshot
May 01, 2018 - At Tuesday's closing bell, Steel Dynamics' stock fell 1.54%, ending the trading session at $44.12.
Volume traded for the day: 3.01 million shares, which was above the 3-month average volume of 2.66 million shares.
Stock performance in the last month — up 2.99%; previous six-month period — up 14.09%; past twelve-month period — up 19.89%; and year-to-date — up 2.30%
After yesterday's close, Steel Dynamics' market cap was at $10.60 billion.
Price to Earnings (P/E) ratio was at 16.00.
The stock has a dividend yield of 1.70%.
The stock is part of the Basic Materials sector, categorized under the Steel & Iron industry.
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