Exploring Steel Dynamics's Earnings Expectations

Steel Dynamics STLD is preparing to release its quarterly earnings on Tuesday, 2025-04-22. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Steel Dynamics to report an earnings per share (EPS) of $1.85.

Anticipation surrounds Steel Dynamics's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Performance in Previous Earnings

The company's EPS missed by $0.06 in the last quarter, leading to a 0.42% drop in the share price on the following day.

Here's a look at Steel Dynamics's past performance and the resulting price change:

Market Performance of Steel Dynamics's Stock

Shares of Steel Dynamics were trading at $118.29 as of April 18. Over the last 52-week period, shares are down 15.79%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release.

Analysts' Take on Steel Dynamics

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Steel Dynamics.

The consensus rating for Steel Dynamics is Neutral, derived from 8 analyst ratings. An average one-year price target of $146.5 implies a potential 23.85% upside.

Comparing Ratings with Competitors

The analysis below examines the analyst ratings and average 1-year price targets of Reliance, United States Steel and Carpenter Tech, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for Reliance, with an average 1-year price target of $324.0, suggesting a potential 173.9% upside.
• Analysts currently favor an Neutral trajectory for United States Steel, with an average 1-year price target of $42.17, suggesting a potential 64.35% downside.
• Analysts currently favor an Outperform trajectory for Carpenter Tech, with an average 1-year price target of $237.5, suggesting a potential 100.78% upside.

Comprehensive Peer Analysis Summary

The peer analysis summary outlines pivotal metrics for Reliance, United States Steel and Carpenter Tech, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Steel Dynamics ranks in the middle for consensus rating among its peers. It ranks at the bottom for revenue growth. It is at the top for gross profit. It is in the middle for return on equity.

About Steel Dynamics

Steel Dynamics Inc operates as a domestic steel producer and metal recycler in the United States. The company's product portfolio comprises hot rolled sheet, hot rolled plate, painted sheet products, cold rolled sheet, and others. Its reportable segments are steel operations, metals recycling operations, steel fabrication operations, and aluminum operations. Maximum revenue is generated from its steel operations segment, which consists of manufacturing various steel products and numerous coating operations. Its primary sources of revenue are currently from the manufacture and sale of steel products, the processing and sale of recycled ferrous and nonferrous metals, and the fabrication and sale of steel joists and deck products.

Steel Dynamics: Delving into Financials

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Growth: Steel Dynamics's revenue growth over a period of 3 months has faced challenges. As of 31 December, 2024, the company experienced a revenue decline of approximately -8.53%. This indicates a decrease in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Materials sector.

Net Margin: Steel Dynamics's net margin is impressive, surpassing industry averages. With a net margin of 5.35%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Steel Dynamics's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.3% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.36%, the company showcases effective utilization of assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.36.

To track all earnings releases for Steel Dynamics visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.