Reliance Shares Drop 10% After 2Q Outlook Disappoints

Dow Jones04-25

By Sabela Ojea

Shares of Reliance on Thursday dropped after the company guided for lower-than-expected adjusted earnings per share in the second quarter amid a challenging pricing environment.

At 11:19 a.m. ET, shares were down 10% to $281.99.

Stripping out one-time items, the metal solutions provider said it expects quarterly earnings per share of $4.70 to $4.90. Analysts polled by FactSet anticipate adjusted earnings per share of $5.35.

The company also said it expects short-term gross profit margin pressure in the quarter as it works through higher cost inventory on hand.

"While we anticipate continued near-term pricing headwinds, we remain bullish on the longer term tailwinds coming our way through activity related to government stimulus and re/near-shoring," Chief Executive Karla Lewis said.

Reliance's outlook comes as it reports a drop in profit and sales in the first quarter.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

April 25, 2024 11:31 ET (15:31 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.

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