What You Need to Know Ahead of Steel Dynamics' Earnings Release
Fort Wayne, Indiana-based Steel Dynamics, Inc. (STLD) is a leading steel producer and metal recycler. With a market cap of $19.5 billion, the company manufactures and sells a variety of steel products, processes and trades recycled ferrous and nonferrous metals, and also fabricates and markets steel joist and decking products. It is scheduled to announce its fiscal Q2 earnings for 2025 after the market closes on Monday, Jul. 21.
Ahead of this event, analysts expect this diversified steel company to report a profit of $2.04 per share, down 25% from $2.72 per share in the year-ago quarter. The company has a solid trajectory of consistently beating Wall Street’s earnings estimates in each of the last four quarters. In Q1, STLD’s EPS of $1.44 topped the forecasted figure by 2.9%.
For fiscal 2025, analysts expect STLD to report a profit of $9.96 per share, up 1.2% from $9.84 per share in fiscal 2024. Its EPS is expected to further grow 28.7% year-over-year to $12.82 in fiscal 2026.
STLD has lagged behind the S&P 500 Index's ($SPX) 12.6% gain over the past 52 weeks, with its shares up 4.9%. Nonetheless, it has outpaced the Materials Select Sector SPDR Fund’s (XLB) marginal downtick over the same time frame.
On Apr. 22, STLD’s shares grew 3.4% following its better-than-expected Q1 earnings release. The company posted revenue of $4.4 billion, down 6.9% year-over-year but 5.3% above the consensus estimates. Moreover, its EPS of $1.44 declined 60.8% from the year-ago quarter but topped Wall Street expectations by 2.9%. The company experienced year-over-year declines, however, its performance improved sequentially, driven by a rebound in steel demand, increased customer orders, and growing backlogs in its steel and steel fabrication segments. Additionally, steel prices recovered from the lows seen in the second half of 2024. Looking ahead, STLD maintains a positive outlook, expecting solid domestic steel consumption through 2025 and beyond.
Wall Street analysts are highly optimistic about STLD’s stock, with a "Strong Buy" rating overall. Among 12 analysts covering the stock, eight recommend "Strong Buy," one suggests a “Moderate Buy,” and three indicate “Hold.” The mean price target for STLD is $147.64, which indicates a 12.5% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.