Algoma Steel Group (NASDAQ:ASTL) Announces Quarterly Earnings Results

Key Points

• Algoma Steel missed earnings expectations: The company reported a quarterly loss of $0.64 per share, worse than the $0.51 consensus estimate, while revenue of $267.50 million exceeded expectations of $205.57 million.
• Shares declined amid weak profitability: ASTL fell to $3.84, and the company reported a negative net margin of 60.03% and negative return on equity of 75.76%.
• Analyst sentiment remains cautious: The stock has a consensus “Reduce” rating, with three analysts rating it Hold and one rating it Sell; institutional investors own approximately 72% of the shares.

Algoma Steel Group (NASDAQ:ASTL - Get Free Report) released its quarterly earnings results on Wednesday. The company reported ($0.64) earnings per share for the quarter, missing the consensus estimate of ($0.51) by ($0.13), Zacks reports. The company had revenue of $267.50 million during the quarter, compared to the consensus estimate of $205.57 million. Algoma Steel Group had a negative net margin of 60.03% and a negative return on equity of 75.76%.

Algoma Steel Group Stock Performance

NASDAQ ASTL traded down $0.43 during trading on Thursday, reaching $3.84. The company's stock had a trading volume of 1,761,550 shares, compared to its average volume of 1,296,413. The firm has a 50 day moving average price of $4.43 and a 200 day moving average price of $4.48. Algoma Steel Group has a 12 month low of $3.02 and a 12 month high of $5.90. The firm has a market capitalization of $405.73 million, a price-to-earnings ratio of -0.52 and a beta of 1.64. The company has a current ratio of 2.45, a quick ratio of 1.22 and a debt-to-equity ratio of 2.19.

Wall Street Analyst Weigh In

ASTL has been the topic of several research reports. Zacks Research raised Algoma Steel Group from a "strong sell" rating to a "hold" rating in a research report on Tuesday, June 9th. Royal Bank Of Canada reissued a "sector perform" rating on shares of Algoma Steel Group in a report on Thursday, May 14th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Algoma Steel Group in a research note on Wednesday, June 24th. Three research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, Algoma Steel Group currently has a consensus rating of "Reduce".

Institutional Investors Weigh In On Algoma Steel Group

Several institutional investors have recently made changes to their positions in the stock. Raymond James Financial Inc. bought a new position in Algoma Steel Group during the 2nd quarter worth $32,000. Element Pointe Advisors LLC acquired a new stake in shares of Algoma Steel Group during the 4th quarter worth $41,000. Federation des caisses Desjardins du Quebec increased its position in shares of Algoma Steel Group by 101.6% in the fourth quarter. Federation des caisses Desjardins du Quebec now owns 17,860 shares of the company's stock worth $73,000 after purchasing an additional 9,000 shares during the period. FIL Ltd bought a new position in shares of Algoma Steel Group in the fourth quarter worth $85,000. Finally, Engineers Gate Manager LP bought a new position in shares of Algoma Steel Group in the second quarter worth $146,000. 72.00% of the stock is currently owned by institutional investors.

About Algoma Steel Group

Algoma Steel Group Inc is a North American steel producer headquartered in Sault Ste. Marie, Ontario. The company operates a modern electric arc furnace (EAF) complex and an integrated rolling mill, enabling it to transform scrap and direct reduced iron into a wide range of steel products. Algoma Steel Group returned to public markets in 2021 with listings on both the Toronto Stock Exchange and the Nasdaq under the symbol ASTL.

Founded in 1901 as Algoma Steel Corporation, the company grew to become one of Canada’s leading steelmakers before undergoing restructuring in the early 2000s.

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