Gerdau S.A. (NYSE:GGB) Announces Quarterly Dividend of $0.02

Key Points

• Gerdau S.A. declared a quarterly dividend of $0.02 per share, representing a 23.1% increase from the previous dividend, with a yield of 3.0%.
• The company reported $0.08 EPS for the last quarter, missing estimates, and generated a revenue of $3.13 billion, falling short of expectations.
• Equities analysts anticipate Gerdau will earn $0.47 per share in the coming year, suggesting the company can sustain its dividend payments.

Gerdau S.A. (NYSE:GGB - Get Free Report) declared a quarterly dividend on Monday, August 4th, Wall Street Journal reports. Shareholders of record on Wednesday, August 13th will be paid a dividend of 0.0216 per share by the basic materials company on Monday, August 25th. This represents a c) annualized dividend and a yield of 2.9%. The ex-dividend date is Wednesday, August 13th. This is a 23.1% increase from Gerdau's previous quarterly dividend of $0.02.

Gerdau has a payout ratio of 21.1% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Gerdau to earn $0.47 per share next year, which means the company should continue to be able to cover its $0.08 annual dividend with an expected future payout ratio of 17.0%.

Gerdau Trading Up 0.5%

GGB traded up $0.02 on Friday, reaching $2.98. 2,653,879 shares of the company traded hands, compared to its average volume of 11,767,845. The company has a quick ratio of 1.50, a current ratio of 2.89 and a debt-to-equity ratio of 0.30. The company has a market cap of $6.18 billion, a P/E ratio of 10.26, a price-to-earnings-growth ratio of 1.24 and a beta of 1.36. The firm has a fifty day simple moving average of $2.96 and a two-hundred day simple moving average of $2.85. Gerdau has a one year low of $2.27 and a one year high of $3.62.

Gerdau (NYSE:GGB - Get Free Report) last announced its quarterly earnings results on Thursday, July 31st. The basic materials company reported $0.08 earnings per share for the quarter, missing the consensus estimate of $0.09 by ($0.01). The business had revenue of $3.13 billion during the quarter, compared to analysts' expectations of $3.22 billion. Gerdau had a return on equity of 6.51% and a net margin of 4.81%. As a group, equities research analysts expect that Gerdau will post 0.46 earnings per share for the current year.

Institutional Investors Weigh In On Gerdau

Institutional investors have recently bought and sold shares of the company. Park Avenue Securities LLC acquired a new stake in Gerdau during the second quarter worth about $29,000. Wolverine Trading LLC acquired a new stake in shares of Gerdau during the 4th quarter worth approximately $37,000. Xponance Inc. acquired a new stake in shares of Gerdau during the 1st quarter worth approximately $40,000. Sigma Planning Corp acquired a new position in Gerdau in the first quarter valued at approximately $46,000. Finally, Inspire Investing LLC acquired a new position in shares of Gerdau in the 1st quarter valued at $46,000. 1.49% of the stock is currently owned by institutional investors and hedge funds.

About Gerdau

Gerdau SA, together with its subsidiaries, operates as a steel producer company. The company operates through Brazil Business, North America Business, South America Business, and Special Steel Business segments. It also provides semi-finished products, including billets, blooms, and slabs; common long rolled products, such as rebars, wire rods, merchant bars, light shapes, and profiles to the construction and manufacturing industries; drawn products comprising barbed and barbless fence wires, galvanized wires, fences, concrete reinforcing wire mesh, nails, and clamps for manufacturing, construction, and agricultural industries; and special steel products used in auto parts, light and heavy vehicles, and agricultural machinery, as well as in the oil and gas, wind energy, machinery and equipment, mining and rail, and other markets.