Steel Dynamics misses Q3 EPS estimates ($5.26 vs $5.48 expected) despite record steel shipments; shares fall 6.5% after hours
What happened
Steel Dynamics (STLD) reported third-quarter profit of $756 million, or $5.26 a share, up from $403.7 million ($2.74 a share) a year earlier, and revenue of $6.51 billion versus $4.83 billion a year ago. But EPS missed the FactSet consensus of $5.48, and adjusted EBITDA also came in below the average analyst estimate, sending shares down 6.5% to $229.25 in after-hours trading on Monday. The company shipped a record 3.8 million tons of steel, and the average external steel selling price rose $102 quarter-over-quarter to $1,400 a ton. Charges and start-up issues at its new aluminum mill operations weighed on the bottom line.
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Who’s affected
- Steel Dynamics (STLD): direct hit, -6.5% after hours on the EPS/EBITDA miss and aluminum-mill start-up costs
- Nucor (NUE): read-through; reports October 27 and faces the same elevated bar
- Cleveland-Cliffs (CLF): offsetting read-through; its own beat earlier Monday shows winners and losers are diverging within the sector
- U.S. steel/materials broadly (XLB): margin-vs-price questions for tariff-protected producers