Steel Dynamics, Inc. STLD recently announced second-quarter earnings guidance in the range of $3.26-$3.30 per share. It expects second-quarter adjusted earnings in the range of $3.34-$3.38 per share, which will set record quarterly earnings for the company.
The company’s sequential first-quarter 2021 earnings were $2.03 per share, and adjusted earnings were $2.10 per share. Second-quarter earnings for the previous year were 36 cents per share and adjusted earnings were 47 cents per share.
Steel Dynamics expects sequentially higher profit in its steel operations in the second quarter driven by strong underlying steel demand and significant metal spread expansion across the entire platform, especially within the flat roll steel operations. Steel shipments in the second quarter are projected to increase sequentially across the company's steel portfolio, potentially achieving record quarterly volume.
Domestic steel demand also remains strong, which along with historically low flat roll steel inventories underpin higher steel selling prices. The company expects this momentum to continue, leading to even stronger third-quarter results.
Moreover, earnings from the company's metals recycling operations are projected to be in line with first-quarter results. Steel Dynamics also sees sequentially higher earnings in its steel fabrication operations in the second quarter on higher prices and record expected shipments.
The company also bought back roughly $300 million of its common stock during second-quarter 2021.
Shares of Steel Dynamics have gained 117.6% in the past year compared with 139.3% rise of the industry.
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Zacks Rank & Other Key Picks
Steel Dynamics currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the basic materials space are Nucor Corporation NUE, Olin Corporation OLN and Cabot Corporation CBT.
Nucor has a projected earnings growth rate of around 285.3% for the current year. The company’s shares have surged 123.1% in a year. It currently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Olin has an expected earnings growth rate of around 506.7% for the current year. The company’s shares have skyrocketed 248.9% in the past year. It currently sports a Zacks Rank #1.
Cabot has an expected earnings growth rate of around 126% for the current fiscal. The company’s shares have surged 55.3% in the past year. It currently sports a Zacks Rank #1.
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