The steel producer announced that it expects earnings of 42 cents to 46 cents a share for the third quarter, above the 37 cents a share analysts surveyed by Thomson Reuters estimated for the quarter. Steel Dynamics expects higher profitability for the third quarter, with both shipments and metal spreads expected to improve in the quarter.
The company said demand for steel in the automotive, manufacturing, energy, and construction markets is expected to improve.
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Steel Dynamics also declared a third quarter cash dividend of 11.5 cents a share, which is in line with its previous dividend. The quarterly dividend is payable on Oct. 10 to all shareholders of record as of the close of business on Sept. 30. The ex-dividend date is Sept. 26.
TheStreet Ratings team rates STEEL DYNAMICS INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate STEEL DYNAMICS INC (STLD) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins."