Steel Dynamics (NASDAQ:STLD) Posts Earnings Results, Misses Estimates By $0.21 EPS

Key Points

• Steel Dynamics reported quarterly EPS of $5.26, missing analysts’ consensus estimate of $5.47 by $0.21. The company posted a 7.83% net margin and 18.12% return on equity.
• Shares rose 1.9% to $245.17 in midday trading, with the stock valued at a $35.14 billion market cap and trading below its 52-week high of $288.74.
• The company paid a quarterly dividend of $0.53, equivalent to $2.12 annually and a 0.9% yield. Analysts maintain a “Moderate Buy” consensus, with an average price target of $258.64.

Steel Dynamics (NASDAQ:STLD - Get Free Report) announced its quarterly earnings data on Monday. The basic materials company reported $5.26 EPS for the quarter, missing analysts' consensus estimates of $5.47 by ($0.21), Zacks reports. Steel Dynamics had a net margin of 7.83% and a return on equity of 18.12%.

Steel Dynamics Trading Up 1.9%

STLD stock traded up $4.63 during midday trading on Monday, reaching $245.17. The company's stock had a trading volume of 1,428,588 shares, compared to its average volume of 1,195,710. Steel Dynamics has a 52 week low of $144.78 and a 52 week high of $288.74. The stock has a market cap of $35.14 billion, a PE ratio of 22.23, a price-to-earnings-growth ratio of 0.34 and a beta of 1.48. The company has a quick ratio of 1.45, a current ratio of 3.18 and a debt-to-equity ratio of 0.45. The business's 50-day simple moving average is $238.98 and its 200-day simple moving average is $236.65.

Steel Dynamics Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, October 9th. Stockholders of record on Wednesday, September 30th were paid a $0.53 dividend. This represents a $2.12 annualized dividend and a dividend yield of 0.9%. The ex-dividend date of this dividend was Wednesday, September 30th. Steel Dynamics's dividend payout ratio (DPR) is 19.22%.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on STLD. Bank of America dropped their target price on Steel Dynamics from $280.00 to $260.00 and set a "neutral" rating for the company in a report on Thursday, July 9th. Morgan Stanley decreased their price target on Steel Dynamics from $270.00 to $260.00 and set an "equal weight" rating on the stock in a research note on Wednesday, July 22nd. Weiss Ratings cut Steel Dynamics from a "buy (b)" rating to a "buy (b-)" rating in a research report on Tuesday, October 13th. JPMorgan Chase & Co. dropped their price objective on Steel Dynamics from $272.00 to $260.00 and set a "neutral" rating for the company in a research note on Friday, October 9th. Finally, Wall Street Zen lowered Steel Dynamics from a "strong-buy" rating to a "buy" rating in a research note on Sunday, September 20th. Eight analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $258.64.

About Steel Dynamics

Steel Dynamics, Inc is a steel producer and metals recycler headquartered in Fort Wayne, Indiana. The company manufactures steel products using electric arc furnace technology and serves customers across industries such as construction, automotive, manufacturing, and energy.

Its operations include the production of flat rolled steel, long steel products, structural steel, rail, and specialty products. Steel Dynamics also provides steel processing and fabrication services, including the manufacture of steel joists, deck systems, and other components used in commercial and industrial construction.

The company operates metals recycling facilities that collect, process, and supply ferrous and nonferrous scrap to support its steelmaking operations.

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