Olympic Steel (NASDAQ:ZEUS) Announces Earnings Results

Key Points

• Olympic Steel reported a quarterly earnings of $0.50 per share, missing analysts' estimates of $0.59, with revenues at $496.48 million compared to expectations of $506.60 million.
• The company declared a quarterly dividend of $0.16 per share, with an annualized dividend yield of 2.0% and a payout ratio of 52.46%.
• Hedge funds have increased their holdings in Olympic Steel, with institutional investors now owning 87.07% of the company's stock as of the first quarter.

Olympic Steel (NASDAQ:ZEUS - Get Free Report) issued its quarterly earnings results on Thursday. The basic materials company reported $0.50 earnings per share for the quarter, missing analysts' consensus estimates of $0.59 by ($0.09), Zacks reports. The business had revenue of $496.48 million during the quarter, compared to analyst estimates of $506.60 million. Olympic Steel had a net margin of 0.77% and a return on equity of 1.96%.

Olympic Steel Stock Up 1.3%

Shares of ZEUS traded up $0.39 during trading hours on Friday, reaching $31.49. The company's stock had a trading volume of 101,699 shares, compared to its average volume of 67,000. The company has a 50 day moving average of $32.35 and a two-hundred day moving average of $32.56. Olympic Steel has a 1-year low of $26.32 and a 1-year high of $45.23. The firm has a market cap of $351.52 million, a price-to-earnings ratio of 25.81 and a beta of 1.66. The company has a quick ratio of 1.25, a current ratio of 3.16 and a debt-to-equity ratio of 0.41.

Olympic Steel Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd will be issued a $0.16 dividend. The ex-dividend date is Tuesday, September 2nd. This represents a $0.64 dividend on an annualized basis and a dividend yield of 2.0%. Olympic Steel's dividend payout ratio is currently 52.46%.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on ZEUS. KeyCorp cut their price objective on Olympic Steel from $43.00 to $41.00 and set an "overweight" rating on the stock in a report on Tuesday, May 6th. Wall Street Zen upgraded Olympic Steel from a "hold" rating to a "buy" rating in a report on Saturday.

Hedge Funds Weigh In On Olympic Steel

A number of hedge funds have recently added to or reduced their stakes in ZEUS. Jane Street Group LLC increased its holdings in Olympic Steel by 81.6% in the first quarter. Jane Street Group LLC now owns 52,125 shares of the basic materials company's stock worth $1,643,000 after buying an additional 23,416 shares during the last quarter. Royal Bank of Canada grew its holdings in Olympic Steel by 94.9% during the first quarter. Royal Bank of Canada now owns 24,649 shares of the basic materials company's stock valued at $777,000 after purchasing an additional 12,002 shares during the last quarter. AQR Capital Management LLC grew its holdings in Olympic Steel by 3.6% during the first quarter. AQR Capital Management LLC now owns 144,049 shares of the basic materials company's stock valued at $4,540,000 after purchasing an additional 4,951 shares during the last quarter. Finally, Empowered Funds LLC grew its holdings in Olympic Steel by 5.3% during the first quarter. Empowered Funds LLC now owns 64,038 shares of the basic materials company's stock valued at $2,018,000 after purchasing an additional 3,233 shares during the last quarter. Institutional investors and hedge funds own 87.07% of the company's stock.

Olympic Steel Company Profile

Olympic Steel, Inc processes, distributes, and stores metal products primarily in the United States, Canada, and Mexico. It operates in three segments: Carbon Flat Products; Specialty Metals Flat Products; and Tubular and Pipe Products. The company offers stainless steel and aluminum coil and sheet products, angles, rounds, and flat bars; alloy, heat treated, and abrasion resistant coils, sheets and plates; coated metals, including galvanized, galvannealed, electro galvanized, advanced high strength steels, aluminized, and automotive grades of steel; commercial quality, advanced high strength steel, drawing steel, and automotive grades cold rolled steel coil and sheet products; hot rolled carbon comprising hot rolled coil, pickled and oiled sheet and plate steel products, automotive grades, advanced high strength steels, and high strength low alloys; tube, pipe, and bar products, including round, square, and rectangular mechanical and structural tubing; hydraulic and stainless tubing; boiler tubing; carbon, stainless, and aluminum pipes; valves and fittings; and tin mill products, such as electrolytic tinplate, electrolytic chromium coated steel, and black plates.

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