NEW YORK (TheStreet) -- Steel Dynamics (STLD) - Get Report stock is gaining 5.55% to $16.84 on heavy trading volume on Tuesday, after the steel manufacturer reported earnings that surpassed estimates for the 2015 fourth quarter. Revenue fell short of estimates.

After the market close on Monday, the Fort Wayne, IN-based company reported earnings of 9 cents per share for the 2015 fourth quarter, beating estimates by 3 cents.

Revenue dropped by 37% year-over-year to $1.59 billion for the latest quarter, missing estimates of $1.7 billion.

"The fourth quarter 2015 market environment was one of the most challenging in recent history for our steel and metals recycling operations," CEO Mark Millett said in a statement.

Steel Dynamics attributed the weak sales to "seasonality, imports (albeit down sequentially, but still inflated), customer destocking, and customer hesitancy due to volatile raw materials," BMO Capital Markets analysts said in a note this morning.

Analysts anticipate imports and raw materials to continue to pressure financial results, but a modest recovery is expected during the 2016 first quarter.

So far today, 4.09 million shares of Steel Dynamics have exchanged hands, compared with its average daily volume of 3.08 million shares.

Separately, Steel Dynamics has a "buy" rating and a letter grade of B at TheStreet Ratings because of the company's solid financial position based on a variety of debt and liquidity measures.

You can view the full analysis from the report here: STLD

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. 

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