Nov. 24, 2015, 11:59 AM
- Schnitzer Steel (SCHN +9.9%) soars after Morgan Stanley upgrades shares to Equal Weight from Underweight with a $21 price target, raised from $14, believing the worst is over for the company given that the stock has underperformed its peers by ~50% over the last five years.
- The firm expresses optimism about SCHN's mid-cycle margins and free cash flow yield, but says it "cannot get more constructive on the name as long as the global steel market remains grossly oversupplied."
Sep. 28, 2015, 11:59 AM
- Schnitzel Steel (SCHN +2.8%) is higher as Deutsche Bank says a potential takeover of the company by Sims Group could make sense.
- The firm says if Sims were to acquire SCHN in a cash bid at a 40% takeover premium, the deal could be accretive in the first year.
- Deutsche Bank does not see any significant hurdles around a deal given the Schnitzer family shareholding no longer exists and new Sims management could make a deal more likely.
Jul. 1, 2015, 10:26 AM
- Schnitzer Steel (SCHN +17.3%) bounces back big from yesterday's near-10% drubbing, as the stock price pushes back over the $20 mark for the first time since January.
- SCHN fell yesterday in reaction to mostly disappointing FQ3 results which were hurt by weak ferrous selling prices.
- BofA/Merrill upgraded shares to Buy from Underperform with a $21 price target this morning, believing FQ3 results were a trough and noting steadier scrap prices, cost savings and valuation.
Jun. 30, 2015, 11:50 AM
- Schnitzer Steel (SCHN -11.8%) is selling off after reporting FQ3 earnings fell to breakeven from $0.19 in the prior-year period, which actually was better than expected, but the 26% Y/Y drop in revenue was disappointing.
- Results were hurt by weak ferrous selling prices, which rose in the second half of the quarter but still fell 31% Y/Y, reflecting weaker export demand and excess steel production.
- In metals recycling - by far SCHN's largest segment at ~75% of revenue - ferrous volumes rose 29% Q/Q and nonferrous sales volumes added 21%, but the rapid decline in ferrous selling prices in FQ2 hurt shipments in FQ3.
- Also, average inventory costs did not decline as quickly as selling prices, which led to a ~$14/ton adverse impact.
May 18, 2015, 3:59 PM
- Schnitzer Steel (SCHN +9.5%) is upgraded to Overweight from Sector Weight with a $25 price target at KeyBanc, which cites a potential bottoming in U.S. scrap industry fundamentals as well as compelling valuation.
- The firm says recent analysis suggests a broader based U.S. metals recycling industry rationalization, which it believes could potentially allay feedstock and input costs for recyclers as competition for material eases.
- Cheap iron ore and Chinese steel overproduction threatens SCHN's long-term model, though stabilizing commodity prices, an improving European macro environment and a weaker U.S. dollar should help in the short term, JeyBanc says.
Mar. 31, 2015, 10:16 AM
- J.P. Morgan tells clients to short U.S. Steel (X -2.7%), expecting the company to operate at a loss this year.
- JPM cuts its estimated FY 2015 EPS for the company to a loss of $0.25 from its earlier outlook for a $1.57 gain, and sees FY 2016 EPS of $1.42 vs. its earlier view for $3.00.
- The firm believes a strong dollar, weak oil prices and slowing growth in China will weigh on metals demand.
- Also: AKS -3.6%, NUE -1.3%, STLD -2.1%, WOR -3%, CLF -3.9%, CMC -1.8%, TMST -3.9%, SCHN -1.9%.
- Earlier: U.S. Steel to idle Minnesota plant
Jan. 5, 2015, 12:58 PM
- Schnitzer Steel (SCHN -9.2%) is downgraded to Neutral from Buy with a $25 price target, down from $34, at DA Davidson, which sees an uphill battle as macroeconomic trends cloud recovery prospects at the company's core metals recycling business.
- The firm says it has long believed SCHN's inherent earnings power has not been fully appreciated at current price levels, but that a broader recovery in metals recycling profit margins has become increasingly clouded amid broader international economic softness and rapidly declining oil prices.
- Davidson still sees solid long-term earnings potential for SCHN.
Sep. 30, 2014, 8:50 AM
- Schnitzer Steel (NASDAQ:SCHN) says it expects Q4 adjusted EPS from continuing operations of $0.28-$0.32 vs. $0.16 in the year-ago quarter and analyst consensus estimate of $0.20.
- SCHN expects its metals recycling business to generate Q4 operating income of $13-$14 per ton, the highest quarterly performance since 2012, due to productivity and cost reduction initiatives, combined with higher sales volumes sequentially and less market price volatility.
- Sees operating income in its steel manufacturing business of $8M-$9M, the highest quarterly operating income since 2008, citing accelerating demand from west coast construction markets.
- SCHN +1.6% premarket.
Jul. 14, 2014, 10:29 AM
- U.S. Steel (X -2.1%) gives up much of the bump it received late Friday on the Commerce Department's determination that Korean companies had dumped steel tubes into the U.S and slapped penalties of up to 15.75% on some Korean companies.
- Wells Fargo’s Sam Dubinky says the tariffs aren’t a game-changer for U.S. Steel, and remains cautious as it believes shares have been rewarded prematurely on management’s commitment to institute deep costs cuts, which while positive, could be overshadowed by weaker sheet pricing; the firm also thinks U.S. Steel’s cost advantage relative to peers will decline due to falling iron ore prices.
- AKS -1.1%, NUE -0.1%, STLD -1.2%, RS -0.3%, SCHN -1%.
Jul. 11, 2014, 4:32 PM
- U.S. Steel (X +3.2%) and other steel stocks surged near the close after the U.S. Commerce Department set duties of up to 15.75% on steel pipe from South Korean and eight other countries used in the oil and natural gas industry.
- The action reverses an earlier decision after the U.S. steel industry filed a complaint that it was being hurt by unfair competition from overseas.
- AKS +0.6%, NUE -0.5%, STLD +1.2%, RS +0.4%, SCHN +2%.
Jun. 4, 2014, 2:39 PM
- A bullish outlook on steel released in Japan by Credit Suisse could be moving sector stocks in the U.S., Barron's Ben Levisohn writes, even though conditions for the U.S. industry don't look especially promising.
- U.S. Steel (X +3.9%) is enjoying its biggest one-day percentage gain since Dec. 23; some sources cite news of its idling two plants in Texas and Pennsylvania that produce tubular products for the oil and gas industries, but that was announced two days ago.
- Suggesting investors tread lightly on steel stocks, Wells Fargo analysts expect steel imports to remain at elevated levels as domestic vs. international price spreads are more than $100/ton across all flat and long products; imports typically increase when U.S. pricing is at a greater than $100 premium.
- Also: AKS +3.4%, SCHN +1.7%, CMC +0.8%, STLD +0.3%, NUE -0.2%.
May 23, 2014, 8:52 AM
- Schnitzer Steel (SCHN) -1.8% premarket after issuing downside guidance for FQ3 (May), seeing EPS of $0.10-$0.15 including a significant tax benefit, vs. $0.17 analyst consensus estimate.
- SCHN expects adjusted EPS to come in less than reported EPS due to the allocation of tax benefits.
- Says demand for recycled metals remains steady Q/Q, but selling prices for ferrous metals declined ~$40 from the end of FQ2, resulting in a significant adverse average inventory impact to its metals recycling business.
Mar. 18, 2014, 3:21 PM
- Steel stocks are higher despite Nucor's (NUE +0.8%) disappointing guidance, which apparently was more than offset by price increases at ArcelorMittal (MT +1.3%) as mills try to stem the downtrend in prices during the past two months.
- Nomura lowers its Q1 earnings estimates for steel stocks ahead of mid-quarter updates from NUE, mini-mill peer Steel Dynamics (STLD +1.5%) and AK Steel (AKS +6%), which are expected within the coming week, but the firm continues to positively view stock performance in the sector going forward.
- Also: X +5.3%, TX +3.1%, SCHN +2.4%, CMC +2.1%, GGB +1.8%, RS +1.8%.
Aug. 27, 2013, 8:49 AM
- Schnitzer Steel (SCHN) -3.5% premarket after saying it expects to report a net loss in FQ4 vs. consensus EPS of $0.20.
- SCHN says export demand for recycled metals has weakened vs. FQ3 as reflected by lower shipped volumes and lower average sales prices.
- Average purchase prices for material shipped during the quarter declined more slowly than sales prices resulting in lower margins vs. FQ3.
May 29, 2013, 3:33 PM
May 29, 2013, 9:40 AM
Schnitzer Steel (SCHN -1.6%) provides a FQ3 outlook, and expects to incur a pre-tax charge of ~$1M related to its 2012 restructuring program. Ferrous export selling prices have declined steadily through the quarter, with market prices now ~$50/ton lower than at the end of FQ2 driven primarily by lower export demand. As a result, SCHN expects lower consolidated net income Q/Q.| May 29, 2013, 9:40 AM