Stock Monitor: Insteel Industries Post Earnings Reporting
LONDON, UK / ACCESSWIRE / July 30, 2018 /
If you want access to our free earnings report on Steel Dynamics, Inc. (NASDAQ: STLD), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=STLD. The Company reported its second quarter fiscal 2018 operating and financial results on July 24, 2018. The steel producer and metals recycler outperformed top- and bottom-line expectations. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
For the second quarter of the fiscal year 2018, Steel Dynamics reported net sales of $3.09 billion compared to $2.39 billion in Q2 2017. The Company's revenue numbers beat analysts' estimates of $2.89 billion.
During Q2 2018, Steely Dynamics' income from operations soared 89% to a record $501.9 million on a y-o-y basis, and its adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) increased 68% to a record $590.4 million.
For Q2 2018, Steel Dynamics posted a net income of $362 million, or $1.53 per diluted share. Comparatively, the Company's net income was $154 million, or $0.63 per diluted share, in Q2 2017. The Company's earnings beat Wall Street estimates of $1.49 per share.
During Q2 2018, Steel Dynamics' Steel Operations segment's operating income soared 59% to a record $537 million sequentially, based on a growth of 8% in shipments and metal spread expansion, as average steel product pricing increased more than consumed raw material scrap costs. The segment's average product selling price per ton increased $110 to $932 in the reported quarter. The segment's average ferrous scrap cost per ton melted increased $27 to $348 in the reported quarter.
For Q2 2018, Steel Dynamics' Flat Roll Steel Operations unit's operating income advanced 67% sequentially, driven by a metal spread expansion related to a continued strong underlying demand, higher selling values, and a growth of 5% in shipments. Steel Dynamics' Long Product Steel Operations unit's operating income surged 36% on a q-o-q basis, as a result of improved shipments and metal spread expansion, primarily from the Company's Structural and Rail Division. Steel Dynamics' steel production utilization rate was 99% in Q2 2018 compared to 94% in Q1 2018 and 91% in Q2 2017.
Steel Dynamics' Recycling Operations segment's operating income was $26 million in Q2 2018 versus $28 million in Q1 2018. Higher procurement costs offset a rise of 7% in recycled ferrous shipments, resulting from a strong domestic steel mill demand.
During Q2 2018, Steel Dynamics' Fabrication Operations segment recorded an operating income of $14 million compared to $20 million in Q1 2018, as improved average selling values and higher shipments were more than offset by higher steel input costs.
During H1 2018, Steel Dynamics generated a strong cash flow from operations of $504 million and maintained liquidity of $2.0 billion at June 30, 2018. On June 29, 2018, the Company used available cash of $396 million to fund the acquisition of Heartland.
In H1 2018, Steel Dynamics repurchased $118 million of its common stock.
Steel Dynamics announced that it plans to increase its production to approximately 40,000 tons per month during H2 2018, with the expectations to reach an annual run-rate of between 800,000 tons and 900,000 tons of cold roll, pickled and oiled, and galvanized flat roll steel by mid-year 2019.
For Q3 2018, Steel Dynamics is forecasting earnings contribution from Heartland to be reduced by approximately $12 million to $15 million (pre-tax), due to fair value accounting adjustments. On a through-cycle basis, the Company believes the increased benefit of the Heartland acquisition will ultimately improve its through-cycle EBITDA between $50 million and $60 million per year.
Stock Performance Snapshot
July 27, 2018 - At Friday's closing bell, Steel Dynamics' stock was marginally down 0.91%, ending the trading session at $47.99.
Volume traded for the day: 1.21 million shares.
Stock performance in the last month – up 4.92%; previous three-month period – up 5.31%; past twelve-month period – up 31.41%; and year-to-date – up 11.27%
After last Friday's close, Steel Dynamics' market cap was at $11.70 billion.
Price to Earnings (P/E) ratio was at 13.14.
The stock has a dividend yield of 1.56%.
The stock is part of the Basic Materials sector, categorized under the Steel & Iron industry.
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