Olympic Steel (NASDAQ:ZEUS) Releases Quarterly Earnings Results, Misses Estimates By $0.09 EPS

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 data on Thursday. The basic materials company reported $0.50 earnings per share for the quarter, missing the consensus estimate of $0.59 by ($0.09), Zacks reports. Olympic Steel had a net margin of 0.77% and a return on equity of 1.95%. The business had revenue of $496.48 million for the quarter, compared to the consensus estimate of $506.60 million.

Olympic Steel Stock Performance

ZEUS stock traded down $0.48 during midday trading on Wednesday, hitting $30.47. The stock had a trading volume of 63,447 shares, compared to its average volume of 83,827. The firm has a market capitalization of $341.26 million, a price-to-earnings ratio of 24.98 and a beta of 1.72. Olympic Steel has a 52 week low of $26.32 and a 52 week high of $44.01. The stock has a 50-day simple moving average of $32.35 and a 200 day simple moving average of $32.51. The company has a current ratio of 3.07, a quick ratio of 1.18 and a debt-to-equity ratio of 0.40.

Olympic Steel Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Tuesday, September 2nd will be given a $0.16 dividend. This represents a $0.64 annualized dividend and a yield of 2.1%. The ex-dividend date of this dividend is Tuesday, September 2nd. Olympic Steel's dividend payout ratio (DPR) is 52.46%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Royal Bank of Canada lifted its holdings in shares of 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 acquiring an additional 12,002 shares during the period. Jane Street Group LLC raised its holdings in shares of 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 valued at $1,643,000 after buying an additional 23,416 shares during the last quarter. Empowered Funds LLC raised its holdings in shares of Olympic Steel by 5.3% in the first quarter. Empowered Funds LLC now owns 64,038 shares of the basic materials company's stock valued at $2,018,000 after buying an additional 3,233 shares during the last quarter. Finally, AQR Capital Management LLC raised its holdings in shares of Olympic Steel by 3.6% in 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 buying an additional 4,951 shares during the last quarter. 87.07% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

ZEUS has been the topic of several research analyst reports. Wall Street Zen upgraded shares of Olympic Steel from a "hold" rating to a "buy" rating in a research note on Saturday. KeyCorp lowered their price objective on shares of Olympic Steel from $40.00 to $38.00 and set an "overweight" rating on the stock in a research note on Wednesday.

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.