Gerdau (NYSE:GGB) Posts Earnings Results, Misses Estimates By $0.02 EPS

Key Points

• Quarterly miss: Gerdau reported EPS of $0.10 versus analysts' $0.12 estimate, missing by $0.02, and the stock traded down about 0.3% to $4.30 on the news.
• Dividend disclosed: The company paid a quarterly dividend of $0.0194 (annualized $0.08), implying a 1.8% yield and a 41.67% payout ratio.
• Analyst sentiment improving: Several firms upgraded or raised targets (JPMorgan to $5.50; UBS/Itau higher), leaving a consensus rating of "Moderate Buy" with a $4.90 target price.

Gerdau (NYSE:GGB - Get Free Report) issued its quarterly earnings data on Monday. The basic materials company reported $0.10 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.12 by ($0.02), Zacks reports. Gerdau had a return on equity of 6.20% and a net margin of 1.93%.

Gerdau Stock Down 0.3%

Shares of Gerdau stock traded down $0.02 during trading on Monday, reaching $4.30. 11,963,158 shares of the company traded hands, compared to its average volume of 19,941,648. The company has a debt-to-equity ratio of 0.26, a current ratio of 2.89 and a quick ratio of 1.40. Gerdau has a 1-year low of $2.48 and a 1-year high of $4.66. The company has a 50 day moving average price of $3.84 and a 200-day moving average price of $3.79. The firm has a market capitalization of $8.58 billion, a PE ratio of 35.79 and a beta of 1.44.

Gerdau Cuts Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, March 25th. Stockholders of record on Thursday, March 12th were paid a $0.0194 dividend. The ex-dividend date was Thursday, March 12th. This represents a $0.08 annualized dividend and a dividend yield of 1.8%. Gerdau's payout ratio is currently 41.67%.

Insider Activity at Gerdau

In other Gerdau news, Chairman Guilherme Chagas G. Johannpeter sold 85,607 shares of the firm's stock in a transaction on Friday, March 20th. The shares were sold at an average price of $3.29, for a total value of $281,647.03. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Marcos Eduardo Fara Wahrhaftig sold 12,419 shares of the company's stock in a transaction dated Thursday, April 9th. The shares were sold at an average price of $4.06, for a total transaction of $50,421.14. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 208,026 shares of company stock valued at $778,058. Company insiders own 0.02% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Bank of America Corp DE lifted its holdings in shares of Gerdau by 22.4% in the 3rd quarter. Bank of America Corp DE now owns 15,894,871 shares of the basic materials company's stock worth $49,274,000 after purchasing an additional 2,910,482 shares in the last quarter. SPX Gestao de Recursos Ltda raised its holdings in Gerdau by 9.0% during the fourth quarter. SPX Gestao de Recursos Ltda now owns 4,894,496 shares of the basic materials company's stock worth $18,061,000 after buying an additional 403,454 shares during the last quarter. Millennium Management LLC lifted its stake in shares of Gerdau by 54.6% in the first quarter. Millennium Management LLC now owns 4,363,764 shares of the basic materials company's stock valued at $12,393,000 after buying an additional 1,541,311 shares in the last quarter. Mackenzie Financial Corp grew its holdings in shares of Gerdau by 80.6% during the fourth quarter. Mackenzie Financial Corp now owns 4,117,253 shares of the basic materials company's stock valued at $15,286,000 after buying an additional 1,837,160 shares during the last quarter. Finally, State Street Corp grew its holdings in shares of Gerdau by 5.7% during the fourth quarter. State Street Corp now owns 3,531,028 shares of the basic materials company's stock valued at $13,029,000 after buying an additional 190,483 shares during the last quarter. Institutional investors own 1.49% of the company's stock.

Wall Street Analyst Weigh In

GGB has been the topic of a number of analyst reports. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Gerdau in a research note on Friday, March 27th. JPMorgan Chase & Co. lifted their target price on shares of Gerdau from $5.00 to $5.50 and gave the stock an "overweight" rating in a research note on Monday, April 13th. Itau BBA Securities upgraded shares of Gerdau from a "market perform" rating to an "outperform" rating and set a $4.60 target price on the stock in a report on Wednesday, April 1st. UBS Group upped their price target on shares of Gerdau from $4.40 to $4.60 and gave the company a "buy" rating in a research report on Thursday, April 2nd. Finally, Scotiabank upgraded Gerdau from a "hold" rating to a "strong-buy" rating in a report on Thursday, March 26th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $4.90.

Gerdau Company Profile

Gerdau SA is a Brazilian-based steel producer engaged in the manufacture and distribution of long steel products for the construction, industrial and agricultural sectors. Established in 1901, the company operates an integrated network of electric-arc furnaces and rolling mills, producing reinforcement bars, wire rod, merchant bars and structural shapes. Gerdau's product portfolio also includes specialty long steel, high-yield reinforcement, rail, beams and steel coils, as well as value-added processing services such as cutting, bending and coating.

The company has expanded its footprint beyond Brazil, with significant operations in North America, South America and a presence in select European markets.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.