NEW YORK (TheStreet) -- Shares of Schnitzer Steel Industries (SCHN) are up 4.62% to $26.26 after it reported adjusted earnings of 16 cents a share in the third quarter ended May 31, compared to adjusted earnings of 9 cents a share in the period a year ago.
On average, analysts polled by Thomson Reuters estimated 8 cents a share for the quarter.
But total revenue for the third quarter fell to $637 million versus $710 million in the period a year ago. Analysts had expected revenue of $650.16 million.
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Schnitzer Steel noted higher car volumes in its auto parts and steel manufacturing business which helped offset the impact of weaker commodity prices.
TheStreet Ratings team rates SCHNITZER STEEL INDS as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SCHNITZER STEEL INDS (SCHN) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."