Reliance Expects Q2 Adj EPS of $4.70-$4.90 Vs $5.35 Est
Portfolio Pulse from Benzinga Newsdesk
Reliance (RS) forecasts Q2 adjusted EPS of $4.70-$4.90, below the $5.35 estimate, citing a better than normal seasonal demand recovery despite macroeconomic and geopolitical concerns. The company expects a 2.5%-4.5% increase in tons sold, with 2% growth from recent acquisitions. However, it anticipates a 1%-3% decrease in average selling price per ton and short term gross profit margin pressure due to higher cost inventory.
April 25, 2024 | 10:55 am
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Reliance (RS) expects a lower than estimated Q2 adjusted EPS of $4.70-$4.90 due to increased sales volume from acquisitions but anticipates margin pressure from higher inventory costs.
The projected EPS is below the analyst estimate, which typically leads to negative investor sentiment in the short term. The increase in sales volume from acquisitions is positive, but the expected decrease in average selling price and margin pressure from higher cost inventory could negatively impact profitability and investor outlook.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100