Steel Dynamics, Inc. (STLD), headquartered in Fort Wayne, Indiana, functions as a leading steel producer and metal recycler. Valued at $17.2 billion by market cap, the company’s products include flat rolled steel sheet, engineered bar special-bar-quality, and structural beams as well as it recycles scrap metals and manufactures non-residential building components such as steel joists, girders, trusses, and decks for construction projects. The leading domestic steel producer and metals recycler is expected to announce its fiscal fourth-quarter earnings for 2024 after the market closes on Wednesday, Jan. 22.
Ahead of the event, analysts expect STLD to report a profit of $1.41 per share on a diluted basis, down 46% from $2.61 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect STLD to report EPS of $9.95, down 33.4% from $14.95 in fiscal 2023. Its EPS is expected to decline marginally year over year to $9.88 in fiscal 2025.
STLD stock has underperformed the S&P 500’s ($SPX) 26.3% gains over the past 52 weeks, with shares down 5% during this period. Similarly, it underperformed the Materials Select Sector SPDR Fund’s (XLB)1.5% losses over the same time frame.
STLD's underperformance can be attributed to reduced steel prices due to a surge in import volumes from countries other than China. Additionally, factors such as oversupply of steel from increased imports, weak demand from key industries, shortened steel mill lead times, and economic uncertainties have pressured steel prices.
On Oct. 16, STLD reported its Q3 results and its shares closed up by 4% in the following trading session. Its EPS of $2.05 surpassed Wall Street expectations of $1.98. The company’s revenue was $4.34 billion, beating Wall Street forecasts of $4.25 billion.
Analysts’ consensus opinion on STLD stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 12 analysts covering the stock, four advise a “Strong Buy” rating, seven give a “Hold,” and one recommends a “Strong Sell.” STLD’s average analyst price target is $138.27, indicating a potential upside of 22.2% from the current levels.
