Tue, Jul. 26, 6:54 PM
- U.S. Steel (NYSE:X) +4.1% AH after reporting a narrower than expected Q2 loss and saying it expects FY 2016 EPS of ~$0.34.
- The company expects ~$850M in adjusted EBITDA for the full year, compared with its April outlook of nearly $400M, saying "the significant improvements we have made to our earnings power through our Carnegie Way transformation will become more apparent as market prices recover from the very low levels at the end of 2015."
- U.S. Steel says pricing increases contributed to a strong Q2, and expects more price improvement in H2 of the year; its European segment posted its best results in nearly eight years, its flat-rolled segment returned to profitability, and an improving cost structure helped margins.
- Steel names AK Steel (NYSE:AKS), Nucor (NYSE:NUE), Steel Dynamics (NASDAQ:STLD) and Reliant Steel (NYSE:RS) have reported better than consensus earnings this quarter on the heels of surging steel prices.
Thu, Jul. 21, 2:03 PM
Thu, Jul. 21, 8:32 AM
- Net income of $100.9M, or $1.38 per share vs. $90.2M, or $1.20 per share, in the same quarter a year ago.
- Tons sold were up 0.7% from the second quarter of 2015, with the average selling price per ton sold down 10.1%.
- During the three months ended June 30, the company did not repurchase any shares of its common stock.
- Outlook for Q3: Earnings per diluted share of $1.25-$1.35.
- Q2 results
Thu, Jul. 21, 6:54 AM
Wed, Jul. 20, 5:30 PM| Wed, Jul. 20, 5:30 PM | 13 Comments
Mon, Jun. 6, 11:58 AM
- Steel stocks (SLX +2.1%) are higher as U.S. Treasury Secretary Lew blames China for flooding low-cost steel into the U.S. and other markets.
- Lew is urging China to cut excess steel production, as the two countries open high-level talks overshadowed by tension over the South China Sea.
- "The Chinese government is... engaged in economic warfare against the U.S. and sadly, they are winning,” Nucor (NUE +0.3%) CEO John Ferriola says in a WSJ interview, adding that China two months ago set a new production record after spending two years promising to cut production.
- Steel producers are mostly higher: X +2.9%, MT +2.1%, CLF +2.8%, AKS -1%, STLD +0.3%, RS +0.4%.
Tue, May 17, 5:43 PM
- May has been rough for stocks of steel companies, but Cowen analysts say investors should be cautious before buying the dip.
- The firm thinks the spike in prices for Chinese hot rolled coil and iron ore will not last long, and that ongoing efforts to contain the HRC dumping experienced since 2014 may have little impact in the U.S. should the Chinese ship products to another country, which then in turn displaces product to the U.S., resulting in increased supply driving prices lower.
- The firm rates U.S. Steel (NYSE:X), AK Steel (NYSE:AKS), Nucor (NYSE:NUE) and ArcelorMittal (NYSE:MT) at Market Perform, with Steel Dynamics (NASDAQ:STLD) and Reliance Steel (NYSE:RS) at Outperform.
- Separately, the U.S. today set final anti-dumping duties of 265.79% on imports of cold-rolled flat steel from China and 71.35% on imports from Japan.
Thu, May 12, 5:17 PM
- U.S. Steel (NYSE:X) tumbled 10.4% and AK Steel (NYSE:AKS) sank 5.4% in today's trade as analysts say more attractive prices for U.S. steel and falling Chinese prices likely will raise the appeal of targeting the U.S. market even after import tariffs were introduced in recent months for some products.
- "A boat load of imports are likely on the way,” says Axiom Capital's Gordon Johnson as he reiterates a Sell rating $5 year-end stock price target for U.S. Steel.
- U.S. Steel has jumped 85% YTD for its best year in more than a decade, but investors now are spooked by fears that steel prices will follow falling prices for raw materials such as iron ore, says BMO Capital analyst David Gagliano.
- Also today: MT -4%, NUE -0.3%, RS -0.3%, STLD -1.4%, TX -0.4%, WOR -0.5%, GGB -4.3%, CLF -6.9%.
Thu, Apr. 28, 1:10 PM
- Rosenblatt upgrades U.S. Steel (X +5.8%) to Buy from Neutral with a $25 price target, and raises Reliance Steel (RS +0.1%) to Neutral from Sell with a $69 target.
- The firm believes U.S. steel can trade even higher over the next few months as consensus expectations are adjusted to reflect continued upward momentum in domestic carbon sheet pricing, incremental margin gains associated with the Carnegie Way program; a less-negative outlook for the tubular segment, and a favorable volume impact from any capacity restarts.
- For RS, Rosenblatt says its latest channel research indicates a much healthier environment for North American service centers, as downstream demand growth accelerated in early Q2 and the distribution peer group is now planning for margin expansion over the next two quarters.
- Now read Steel stocks enjoy target price raises at Barclays, BofA Merrill
Fri, Apr. 22, 2:40 PM
- Nucor (NUE +0.7%) is downgraded to Sell from Outperform at CLSA following its Q1 earnings miss, saying the recent rally has gone too far too fast.
- The firm also thinks valuations have started to stretch, as there is limited upside on metal margins as a result of rising scrap costs; NUE historically has traded at an average of 13x-14x two-year forward earnings, which yields a $44 stock price target when applied to its revised 2017 EPS of $3.20.
- CLSA also cuts its rating on Reliance Steel (RS -0.4%) to Underperform from Buy while raising its target price to $75 from $72 on higher gross margins.
- Now read Will Reliance Steel & Aluminum surprise again?
Thu, Apr. 21, 1:11 PM
Thu, Apr. 21, 10:58 AM
- Net income of $92.2M, or $1.03 per share vs. $101.3M, or $1.30 per share, in the same quarter a year ago.
- Tons sold were down 2.7% from the first quarter of 2015, with the average selling price per ton sold down 15.6%.
- During the three months ended March 31, the company did not repurchase any shares of its common stock.
- Outlook for Q2: Earnings per diluted share of $1.15-$1.25.
- Q1 results
Thu, Apr. 21, 6:53 AM
Wed, Apr. 20, 5:30 PM
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Tue, Apr. 19, 3:39 PM
- Analysts at both Barclays and BofA Merrill Lynch raise their price targets for some steel industry stocks (SLX +4%), seeing industrial activity picking up for this spring and tight domestic supplies and low imports supporting higher steel prices.
- But the firm still expect pricing to come down over H2 as overseas production ramps back up and domestic scrap flows improve.
- Barclays says US Steel (X +4%) and AK Steel (AKS +4.5%) still look expensive but the stocks should benefit in the near term from the momentum driving hot rolled coil pricing; the firm raises its price targets for X to $15 from $7, AKS to $3 from $2, Steel Dynamics (STLD +1.5%) to $27 from $22, and Nucor (NUE +0.9%) to $52 from $47.
- BofA Merrill raises its stock targets for X to $9 from $1, AKS to $2.50 from $1, STLD to $27 from $24, and NUE to $55 from $50.
- However, BofA also downgrades Reliance Steel (RS -0.2%) to Underperform from Neutral, thinking the stock’s strong move has taken its valuation well above its historical EBITDA averages.
- Now read Reuters: China, major producers fail to reach steel deal
Mon, Apr. 4, 7:43 AM
- Reliance Steel (NYSE:RS) has acquired all of the capital stock of Best Manufacturing, a custom sheet metal fabricator of steel and aluminum products.
- For the year ended December 31, 2015, the company's net sales were approximately $20M.
- Best Manufacturing will operate as a wholly-owned subsidiary of Reliance Steel & Aluminum and current management will remain in place.
Reliance Steel & Aluminum Co. is a metals service center company which engages in processing and distribution of metals. Its products include; Alloy Steel, Aluminum, Brass and Copper, Carbon Steel, Stainless Steel, and Titanium. Its services include; bean bar and tube cutting, bending, forming... More
Sector: Industrial Goods
Industry: Metal Fabrication
Country: United States
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