Stock Monitor: Insteel Industries Post Earnings Reporting
LONDON, UK / ACCESSWIRE / January 24, 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. The Company reported its fourth quarter and fiscal 2017 operating and financial results on January 22, 2018. The steel producer and metals recycler reported record annual sales and net income. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
For the three months ended December 31, 2017, Steel Dynamics reported net sales of $2.34 billion, reflecting a growth of 23% compared to net sales of $1.91 billion in Q4 2016. The Company's revenue numbers topped analysts' estimates of $2.17 billion.
For the full fiscal year 2017, Steel Dynamics' net sales were a record $9.5 billion compared to $7.8 billion in FY16. Each of the Company's three operating platforms achieved higher average annual selling values, while its steel and fabrication operating platforms also each achieved record shipments. During FY17, Steel Dynamics' average selling price for the Company's steel operations increased $107 to $765 per ton, and the average 2017 ferrous scrap cost per ton melted increased $73 to $293.
For Q4 2017, Steel Dynamics reported a net income of $305 million, or $1.28 per diluted share, compared to a net income of $20 million, or $0.08 per share, in Q4 2016.
Steel Dynamics' reported quarter earnings included lower pre-tax earnings of $0.02 per diluted share related to debt refinancing and repayment charges; lower pre-tax earnings of approximately $0.07 per diluted share related to the Company's two flat roll division planned outages; a tax benefit of approximately $0.07 per diluted share related to certain discrete valuation allowance reductions; state tax refunds and equity-based compensation; and an additional one-time tax benefit of $0.76 per diluted share resulting from Steel Dynamics' revaluation of its deferred tax assets and liabilities in connection with the recently enacted US Federal ‘Tax Cuts and Jobs Act of 2017'(TCJA). Comparatively, the prior year's same quarter's net income included non-cash goodwill and asset impairment charges of $0.31 per diluted share, and debt refinancing and repayment charges of $0.04 per diluted share.
Steel Dynamics' earnings, adjusted for one-time gains and costs, were $0.54 per share in Q4 2017, and were ahead of Wall Street's estimates of $0.49 per share.
Steel Dynamics' net income totaled $813 million, or $3.36 per diluted share, in FY17 compared to $382 million or $1.56 per diluted share, in FY16. Excluding the one-time TCJA tax benefit and debt refinancing costs, the Company still achieved a record annual net income of $641 million, or $2.65 per diluted share. Excluding charges related to litigation settlements, non-cash goodwill and asset impairment, and debt refinancing, Steel Dynamics' adjusted net income was $472 million, or $1.92 per diluted share, in FY16.
During Q4 2017, Steel Dynamics' Steel Operations segment's operating income dropped 26% to $207 million on a q-o-q basis, attributed to a 4% decline in shipments, product mix shift, and metal spread compression. Longer than typical planned outages resulted in higher costs and lower value-add shipments, and reduced the reported quarter pre-tax earnings by approximately $27 million. For Q4 2017, the segment's average product selling price for the Company's steel operations decreased $17 to $761 per ton. The average ferrous scrap cost per ton melted decreased $5 to $300.
During Q4 2017, Steel Dynamics' Flat Roll Products segment's operating income decreased 30% sequentially, based on lower shipments, prolonged outages, and metal spread compression. The Company's steel production utilization rate was 89% in the reported quarter compared to 92% in the previous quarter and compared to the domestic industry utilization rate of approximately 73%.
For Q4 2017, Steel Dynamics' Metals Recycling Operations segment's operating income totaled $22 million compared to $21 million in Q3 2017. The Company's Fabrication Operations segment's reported quarter operating income was $22 million, consistent with the prior quarter's results. The Fabrication group achieved another quarter of record shipments.
Stock Performance Snapshot
January 23, 2018 - At Tuesday's closing bell, Steel Dynamics' stock marginally fell 0.45%, ending the trading session at $46.36.
Volume traded for the day: 4.10 million shares, which was above the 3-month average volume of 2.34 million shares.
Stock performance in the last month – up 7.04%; previous three-month period – up 19.18%; past twelve-month period – up 30.59%; and year-to-date – up 7.49%
After yesterday's close, Steel Dynamics' market cap was at $10.95 billion.
Price to Earnings (P/E) ratio was at 21.35.
The stock has a dividend yield of 1.34%.
The stock is part of the Basic Materials sector, categorized under the Steel & Iron industry.
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