Why Steel Dynamics Shares Are Sliding Today

Steel Dynamics, Inc. STLD shares are down Friday morning following its lackluster guidance for the second quarter 2023. 

The company expects second-quarter EPS of $4.78-$4.82, significantly lower than $6.44 a year ago. The Street view stands at $4.93.

In the quarter to be reported, the company sees delays in some customer projects related to continued supply-chain constraints due to steel fabricators' extended backlogs, coupled with lack of construction materials and labor. 

Steel Dynamics expects metal margins to be lower than near-record first-quarter results.

However, second-quarter profitability from the company's steel operations is expected to be significantly stronger than sequential first-quarter results. 

Steel order activity remains solid in the automotive, construction, industrial, and energy sectors. 

Second-quarter steel fabrication shipments are expected to be steady compared to the first quarter, partially offset by delays in some customer projects related to continued supply-chain constraints.

Repurchase: The company repurchased $364 million, or 2%, of its common stock during the second quarter through June 9, 2023.

Dividend: The company's second-quarter cash dividend of $0.425 per share is payable on or about July 14 to shareholders of record on June 30.

Price Action: STLD shares are trading lower by 3.32% to $102.44 on the last check Friday.