Posts for Ticker ‘RS’

Top Analyst Downgrades (CRDN, FSLR, NUE, RS, SINA, TLB)

These are some of the top pre-market analyst downgrades and cautious research calls we have seen early this Wednesday morning:

Ceradyne (CRDN) cut to Underperform at Wachovia; Cut to Accumulate at ThinkEquity.
First Solar (FSLR) Cut to Hold at Soleil.
Nucor (NUE) Cut to Hold at KeyBanc.
Reliance Steel (RS) Cut to Hold at KeyBanc.
Sina (SINA) Cut to Neutral at Pali.
Talbots (TLB) Cut to Market Perform at FBR.

JON C. OGG

Posted on: June 10, 2009 – 6:56 am in Analyst Calls, , , , , ,

Coal and Steel Play Follow the Leader (IIIN, RS, ACI, BTU, MEE, NUE)

Two small-cap steel companies reported earnings before the market opened today. Insteel Industries (NASDAQ:IIIN) beat analysts’ estimates of $0.60 EPS on $101 million in revenue, posting EPS of $0.89 on revenues of $106 million. Reliance Steel (NYSE:RS) posted EPS of $2.07 on revenue of $2.57 billion, easily outpacing estimates of $1.95 EPS and revenue of $2.37 billion. Insteel is up more than 3% and Reliance is up more than 11% in early trading today.

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Posted on: October 16, 2008 – 2:48 pm in Commodities, Earnings, Metals, , , , , ,

Reliance Steel Surges To All-Time Highs on Guidance (RS)

Reliance Steel & Aluminum Co. (NYSE: RS) is seeing a surge in pre-market trading this Tuesday after the company raised its guidance.  Reliance expects its earnings to now come in a range of $2.00 to $2.10 EPS.  This is roughly 30% above its prior guidance and above analysts’ earnings estimates of $1.63 per diluted share.

The reasons it cited are more significant carbon steel product price hikes more rapidly than  it had anticipated and because it has expanded its gross profit margins more than anticipated in the current environment.

As of 8:57 AM this has only traded some 4500 shares, but shares are indicated up 7.5% at $79.00 in pre-market levels.  That will also mark a 52-week high as the prior range was only $39.91 to $74.69.  In fact, this is an all-time high for the stock.

Jon Ogg
June 24, 2008

Posted on: June 24, 2008 – 8:01 am in Metals,

Goldman Sachs & Massive Steel Prices (X, NUE, ATI, STLD, SCHN, GNA, WOR, AKS, ROCK, RS, CMC)

Goldman Sachs is out with a call raising its steel company earnings targets after above expectation steel prices and tighter supplies that represent a physical steel shortage. It sees some US steel prices rising from $700 recent targets up to a new $850 target per short ton.  It also sees 2009 prices above 2008 prices and sees wider spreads with raw steel compared to scrap costs.

There was one lowered target on Olympic Steel, Inc. (NASDAQ: ZEUS).  Goldman Sachs is raising ZEUS earnings estimates for this year and next, but it is downgrading the stock from Buy to Neutral because its shares are up more than 50% since being added as Buy in November.  It is raising the rating on U.S. Steel (NYSE: X) from neutral to Buy and it has raised targets as well, and it raised 2008 EPS from $11.10 to $14.80 and 2008 from $12.75 to $16.75.

Other estimates are raised in the sector:  Allegheny Tech (NYSE: ATI) was maintained as Buy and saw a slight boost to earnings targets.  Gerdau AmeriSteel (NYSE: GNA), Gibralter Ind. (NASDAQ: ROCK), Reliance Steel (NYSE: RS), Steel Dynamics (NASDAQ: STLD), AK Steel (NYSE: AKS), and Commercial Metals (NYSE: CMC) are all neutral rated but saw estimates raised considerably considering the neutral ratings.

The firm is also positive on Nucor Corp. (NYSE: NUE), which it maintains a Buy rating on and raised estimates sharply on for this year and next.

Goldman Sachs has sell ratings on Worthington (NYSE: WOR) and Schnitzer Steel (NASDAQ: SCHN), although the firm even raised earnings estimates on those two names.

Jon C. Ogg
March 20, 2008

Posted on: March 20, 2008 – 7:29 am in Analyst Calls, Metals, , , , , , , , , , ,

Goldman Sachs on Steel & Metals in 2008 (NUE, ZEUS, RS, ATI, X, SCHN, AKS)

Goldman Sachs is out with a call covering the steel stocks.  We’ll be keeping this one shortened to keep it in a summary format.  Goldman is noting that US STEEL PRICES ARE SET TO RISE SIGNIFICANTLY IN 2008.  It notes a short squeeze that should more than offset recessionary demand trends.  It also notes a trend in mini-mills where they will see higher scrap price costs in the near-term but will have wider margins later in 2008 and 2009.  Goldman also believes the integrated steel companies will see margin increases on an immediate basis.

Below are the stock calls seen in the steel and related sector:

  • Nucor Corp. (NYSE: NUE) is its Top Pick in the sector;
  • and that is followed by Olympic Steel (NASDAQ: ZUES) and Reliance Steel (NYSE: RS) as Buy ratings;
  • it also has Allegheny Tech (NYSE: ATI), U.S. Steel (NYSE: X) as Neutral ratings;
  • Schnitzer Steel (NASDAQ: SCHN) was downgraded to the loathed SELL rating from an already lackluster Neutral rating.  It sees a 15% downside to its new price target of $47.00 as the premium to peers is unwarranted.
  • AK Steel Holding (NYSE: AKS) is being removed from The Americas SellList and therefore being raised to a Neutral rating.  Its 2008estimates are being hiked to $4.25 from $3.30 and the 2009 estimatesare being raised to $3.85 from $3.35. 

Jon C. Ogg
January 16, 2008

Posted on: January 16, 2008 – 9:17 am in Analyst Calls, Metals, , , , , , ,

Earnings Warning & Denying Merger Rumors Hurt Steel Stocks (NUE, STLD, X, RS, AKS)

Stock Tickers: NUE, STLD, X, RS, AKS

Nucor Corp. (NUE-NYSE) has a bit of a surprising news this morning: a steel company issuing an earnings warning. It now expects that earnings for the second quarter ending June 30, 2007 are expected to be in the range of $1.05 to $1.15 per diluted share, compared to estimates of $1.39 and compared to $1.26 EPS in the first quarter of 2007.

Here is the explanation from the company:  Second quarter earnings have been significantly impacted by lower shipments from Nucor’s bar mill group. The rapid increase in scrap prices in the first quarter resulted in hedge buying during that quarter by our customers ahead of anticipated increases in steel products pricing. This hedge buying by our customers produced a record for first quarter shipments from our bar mill group. In addition to the first quarter hedge buying driven by volatility in scrap pricing, bar market demand in the second quarter has been marginally reduced by softness in the automotive and residential construction segments. This softness reduced demand for our SBQ bar and rebar products. We expect second quarter bar shipments to decline approximately 17% from the first quarter shipments.

This news combined with the news that ThyssenKrupp in Europe denied market rumors and reports that it was in talks to acquire U.S. Steel (X-NYSE). 

This combined earnings warning from a key player and less consolidation in the sector is pressuring other steel names: Steel Dynamics (STLD-NASDAQ) -4%, US Steel (X-NYSE) -5.5%, Reliance Steel & Aluminum (RS-NYSE) -2%, AK Steel (AKS) -2.5%.

Jon C. Ogg
June 11, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: June 11, 2007 – 8:45 am in Metals, , , , ,