Steel Dynamics said it expects earnings of 38 cents to 42 cents a share for the fourth quarter, below the 44 cents a share analysts surveyed by Thomson Reuters expect. The company cited acquisition costs and low raw material prices as reasons for the low guidance.
The company's recycling operations are expected to record a "minimal loss" in the quarter, compared to an operating income of $13 million in the third quarter. Steel Dynamics said it expects shipments and ferrous metal margins to fall about 10% in the fourth quarter, compared to the third quarter.
TheStreet Ratings team rates STEEL DYNAMICS INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate STEEL DYNAMICS INC (STLD) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins."