Industrial metals distributor Ryerson's Q3 revenue rises on higher shipments, prices
Overview
US industrial metals distributor's Q3 revenue rose 8.6% sequentially on higher shipments and prices
Adjusted EPS for Q3 was $0.61, with net income more than doubling from prior quarter
Company exceeded first-year synergy target from Olympic Steel merger ahead of schedule
Outlook
Ryerson expects Q4 shipments to decline 6%-8% sequentially due to seasonality
Company sees Q4 net sales between $1.96 bln and $2.04 bln
Ryerson forecasts Q4 net income of $16 mln to $20 mln, or $0.30-$0.38 per diluted share
Result Drivers
SHIPMENT AND PRICE GAINS - Co said higher shipment volumes and increased average selling prices drove Q3 revenue growth
CARBON STEEL DEMAND - Co said strong demand and multi-year high carbon prices supported overall results
SYNERGY BENEFITS - Co realized $13 mln in Q3 synergy benefits from Olympic Steel merger, exceeding first-year target ahead of schedule
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 EPS | $0.61 | ||
Q3 Net Income | $32 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the iron & steel peer group is "buy."
Wall Street's median 12-month price target for Ryerson Holding Corporation is $29.00, about 1.2% below its October 27 closing price of $29.34
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 14 three months ago
Reuters Recommended Reads
Oct 26 - Steelmaker Gerdau's profit rises 40% in Q3 on strong North America operations
Oct 28 - SSAB tops profit expectations as EU import curbs boost steel prices
Oct 26 - Nucor beats Q3 sales estimates on steel mills unit growth
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)