Steel Dynamics projects in-line Q3 earnings but shares lower

|About: Steel Dynamics, Inc. (STLD)|By:, SA News Editor

Steel Dynamics (STLD -1.3%) sees Q3 EPS of $0.21-$0.26, in line with Wall Street expectations of ~$0.25, as it expects profitability from steel operations to increase Q/Q.

Higher profitability from sheet operations is related to both higher volume and metal spread; increased profitability from long products operations is expected to benefit from higher volume, more than offsetting metal spread declines caused by decreased product pricing.

STLD is initiated with a Market Perform rating and $18 price target at BMO, citing a reasonable balance sheet but potential for dilution from a convertible bond due 2014.