Steel Dynamics sees Q2 EPS in line with consensus
Co issues in-line guidance for Q2 (Jun), sees EPS of $0.20-0.24 vs. $0.23 Capital IQ Consensus Estimate.
- EPS above excluded the following items: ~$29 mln, or $0.07/share, of expenses associated with the company's Minnesota Operations. ~$9 mln, or $0.02 per diluted share, of reduced earnings related to a furnace maintenance outage at Iron Dynamics.
- Commentary: Improved second quarter 2015 shipments will be offset by unexpected metal margin compression, driven by steel imports remaining much higher than originally anticipated, resulting in average quarterly steel prices decreasing more than average quarterly scrap prices. The benefit of reduced scrap pricing was realized in the second quarter; but, the continued flood of steel imports thus far in 2015 continued to pressure steel product pricing to a greater degree. However, steel pricing has recently begun to stabilize and domestic steel demand remains solid.
Other steel producers to watch include: AKS, CMC, MT, SCHN, X. Steel processors to watch: ROCK, RS, RYI, WOR, ZEUS. Nucor (NUE) provided guidance Friday