Steel Dynamics Q4 revenue misses estimates on lower volumes, pricing

Overview

• Industrial metals firm's Q4 revenue missed analyst expectations

• Q4 EPS beat analyst expectations

• Company repurchased $240 mln of its stock in Q4

Outlook

• Steel Dynamics expects strong demand for steel and aluminum products

• Company sees improved steel pricing and steady customer demand

• Steel Dynamics continues commissioning aluminum operations for industrial and automotive sectors

Result Drivers

• STEEL OPERATIONS - Q4 operating income declined 35% from Q3 due to lower selling prices and volumes, impacted by seasonal demand and extended maintenance outages

• ALUMINUM PROGRESS - Successful production of aluminum products for industrial, beverage can, and automotive markets, with positive EBITDA achieved in December

• STEEL FABRICATION - Q4 operating income decreased due to seasonal shipment declines, despite improved selling values and reduced raw material costs

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the iron & steel peer group is "buy"

• Wall Street's median 12-month price target for Steel Dynamics Inc is $190.00, about 4.8% above its January 23 closing price of $181.32

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nPn3K3xSYa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)