What's Going On With Steel Dynamics Shares Today?
Portfolio Pulse from Shivani Kumaresan
Steel Dynamics Inc (NASDAQ:STLD) shares increased after the company provided Q4 2023 earnings guidance, expecting EPS of $2.60 - $2.64, in line with estimates but lower than Q3 and Q4 FY22 results. The company anticipates lower profitability from steel operations due to metal spread contraction, despite solid steel order activity and recent pricing increases. Earnings from metals recycling are expected to be comparable to Q3, while steel fabrication earnings are projected to decrease. Steel Dynamics has repurchased $1.4 billion of its stock and paid $271 million in dividends in 2023. The company will release full-year earnings on January 23, 2024. STLD shares rose by 5.64% to $125.85.
December 15, 2023 | 3:54 pm
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Steel Dynamics expects Q4 EPS of $2.60 - $2.64, in line with estimates but lower than previous quarters. Solid order activity and recent price increases may offset lower steel operation profitability. The company has repurchased $1.4 billion in stock and paid $271 million in dividends in 2023.
The guidance provided by Steel Dynamics is in line with estimates, which is a positive sign for investors and may contribute to the short-term rise in stock price. The company's solid order activity and recent pricing increases suggest a healthy demand for their products, which is likely to be viewed favorably by the market. Additionally, the aggressive stock repurchase program and dividends paid out indicate a strong commitment to returning value to shareholders, which typically supports stock prices.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100