SCHN - Schnitzer stock slumps nearly 11% on mixed results
2023-04-05 12:25:57 ET
- Shares of Schnitzer Steel ( NASDAQ: SCHN ) slumped nearly 11% on Wednesday after the company reported mixed second quarter results.
- The steel maker and scrap metal recycling company posted Q2 Non-GAAP EPS of $0.14, missing estimates by 5 cents. However, revenue of $756 million was ahead of consensus by at least $33.45 million.
- "Compressed metal spreads on shipments contracted before the increase in market prices during the second half of the quarter offset the benefit from average inventory accounting of approximately $8 per ferrous ton," the company said in a statement.
- The company said its Q2 ferrous sales volumes of 1.26 million long tons had an average selling price of $367 per LT, which compares to sales volumes of 1.07 million long tons at $445 per LT a year ago.
- Q2 finished steel sales volumes were 109,000 short tons at an average selling price of $943 per ST. Last year, steel sales volumes were 106,000 short tons with ASP of $1,045 per ST.
- Rolling mill utilization came in at 75% for the second quarter compared to 86% last year.
- Other Q2 metrics: Operating cash flow $88M, Total debt $310M, Adjusted EBITDA $32M vs. $75M last year, Capex $27M.
- The company also declared a $0.1875/share quarterly dividend, in line with previous.
- SCHN fell nearly 40% in 2022 while the benchmark S&P 500 index slipped 20%.
- Seeking Alpha contributor JP Research recently laid out a "BUY" case for SCHN .
For further details see:
Schnitzer stock slumps nearly 11% on mixed results