Steel Dynamics, Inc. (NASDAQ/GS: STLD) Issues Third Quarter 2024 Earnings Guidance

September 16, 2024 09:16 PM PDT | By Team Kalkine Media

Steel Dynamics, Inc. (NASDAQ/GS: STLD) Issues Third Quarter 2024 Earnings Guidance — Image source: Shutterstock

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Steel Dynamics, Inc. (NASDAQ/GS: STLD) has announced its earnings guidance for the third quarter of 2024, projecting earnings in the range of $1.94 to $1.98 per diluted shareThis guidance reflects a notable decrease from the $2.72 per diluted share reported in the second quarter of 2024 and a significant drop from the $3.47 per diluted share earned in the same quarter last year.

The anticipated decline in profitability for the third quarter is primarily attributed to reduced average realized pricing within the company's flat rolled steel operationsAs approximately 80 percent of this segment's business is contractually tied to lagging pricing indices, the company has faced lower average pricing despite a stabilization and subsequent improvement in flat rolled steel prices during the quarterDespite this, underlying steel demand has remained steady.

In contrast, earnings from Steel Dynamics' metals recycling operations are expected to be consistent with second quarter resultsThis stability is due to steady volumes, which have offset a slight decline in realized pricing.

For the steel fabrication segment, earnings are projected to be moderately lower compared to the second quarterThis is attributed to a slight decrease in average realized pricingHowever, the order backlog for steel fabrication remains robust, extending into the first quarter of 2025 at favorable pricing levelsThe company anticipates improved volumes in 2025 driven by declining interest rates and continued support from the U.Sinfrastructure program, which is expected to positively impact demand for steel products including joist and deck products, as well as flat rolled and long product steels.

Steel Dynamics has continued to demonstrate confidence in its financial outlook and cash flow generation capabilitiesIn line with this, the company repurchased $307 million of its common stock, representing approximately two percent of its total shares, through September 11, 2024.

The company is scheduled to release its full third quarter 2024 earnings report after the market closes on Wednesday, October 16, 2024Following the release, Steel Dynamics will host a conference call on October 17, 2024, at 11:00 a.mEastern Daylight Time to discuss the results and provide further insights into the company’s performance and outlook.

This update from Steel Dynamics underscores the challenges faced in the current steel market environment while highlighting the company's strategic initiatives and ongoing commitment to shareholder value.

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