Ryerson (RYI) Strengthens Portfolio With Hudson Acquisition
Ryerson Holding Corporation RYI, a prominent value-added processor and distributor of industrial metals, revealed its recent acquisition of Hudson Tool Steel Corporation. Hudson — a supplier of tool steels and a variety of high-speed, carbon and alloy steels — is headquartered in Cerritos, CA, and operates additional locations in Loves Park, IL, and Dover, NH.
Hudson's lineup of top-notch standard and specialized tool steel complements Ryerson's growing presence in the tool steel space. Integrating Hudson's expertise with its existing tool steel capabilities will significantly bolster RYI’s capacity to cater to the varied demands of customers across its network.
Hudson Tool Steel has built a reputation as a reliable provider of tool steel, high-speed steel, carbon and alloy materials, serving customers across the nation since 2002. The company is enthusiastic about the opportunity to sustain strategic growth within the North American tool steel market. As an integral component of the Ryerson Family of Companies, they are committed to delivering high-quality products and services to valued customers.
Ryerson’s shares have inched up 1.3% in the past year compared with the industry's 18.9% rise in the same period.
Image Source: Zacks Investment Research
In the third quarter of 2023, Ryerson exceeded expectations by posting earnings of $1 per share, surpassing the Zacks Consensus Estimate of 37 cents. However, the company experienced a 19% year-over-year decline in net sales, amounting to $1,246.7 million. The figure fell short of the Zacks Consensus Estimate of $1,261 million. The downside in net sales was caused by lower volumes and average selling prices.
For the fourth quarter, Ryerson foresees a typical seasonal industry demand pattern, expecting a 4-7% decline in customer shipments from the previous quarter’s levels. Net sales are projected to be $1.00-$1.15 billion, with a 3-5% decline in average selling prices. LIFO income is estimated at $8-$12 million for the quarter. Adjusted EBITDA, excluding LIFO, is expected to be $28-$32 million. Earnings per share are forecast to be in the band of 18-22 cents.
Ryerson Holding Corporation Price and Consensus
Ryerson Holding Corporation price-consensus-chart | Ryerson Holding Corporation Quote
Zacks Rank & Other Key Picks
Ryerson currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Basic Materials space are Axalta Coating Systems Ltd. AXTA, sporting a Zacks Rank #1 (Strong Buy), and The Andersons Inc. ANDE and Alamos Gold Inc. AGI, each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for AXTA’s current-year earnings is pegged at $1.58, indicating year-over-year growth of 6.8%. AXTA beat the Zacks Consensus Estimate in three of the last four quarters and missed one, with the average earnings surprise being 6.7%. The company’s shares have rallied 22.2% in the past year.
The Zacks Consensus Estimate for ANDE’s current-year earnings has been revised upward by 5.1% in the past 60 days. Andersons beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 32.8% on average. ANDE’s shares have rallied around 47.1% in a year.
The consensus estimate for Alamos’ current fiscal year earnings is pegged at 53 cents, indicating year-over-year growth of 89.3%. AGI beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 25.6%. The company’s shares have surged 49.8% in the past year.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Andersons, Inc. (ANDE) : Free Stock Analysis Report
Alamos Gold Inc. (AGI) : Free Stock Analysis Report
Ryerson Holding Corporation (RYI) : Free Stock Analysis Report
Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report
