Stock Monitor: Friedman Industries Post Earnings Reporting
LONDON, UK / ACCESSWIRE / December 01, 2017 / Active-Investors free earnings report on Reliance Steel & Aluminum Co. (NYSE: RS) ("Reliance") has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/'symbol=RS. The Company reported its third quarter fiscal 2017 operating results on October 26, 2017. The metals service-center Company surpassed top- and bottom-line expectations, and also provided guidance for the upcoming quarter. Register today and get free access to our complimentary member's area where many more reports are available:
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Active-Investors.com is currently working on the research report for Friedman Industries, Incorporated (NYSE AMER: FRD), which also belongs to the Basic Materials sector as the Company Reliance Steel & Aluminum. Do not miss out and become a member today for free to access this upcoming report at:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Reliance Steel & Aluminum most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:
www.active-investors.com/registration-sg/'symbol=RS
Earnings Highlights and Summary
For the quarter ended September 30, 2017, Reliance's sales jumped 12.1% to $2.45 billion compared to $2.19 billion in Q3 2016. The Company's revenue numbers exceeded analysts' expectations of $2.37 billion.
During Q3 2017, Reliance's gross profit margin was 28.0% compared to 30.0% in Q3 2016, and was within the Company's guidance range of 27% to 29%. Reliance's FIFO gross profit margin was 28.2% in the reported quarter compared to 29.4% in the prior year's same quarter.
For Q3 2017, the Company's net income soared 96.6% to $97.3 million from $49.5 million in Q3 2016. The Company's earnings per diluted share were $1.32 in the reported quarter, up 94.1% from $0.68 in the prior year's comparable quarter. The Company's net income included pre-tax impairment and restructuring charges of $2.1 million, or $0.02 per diluted share, in Q3 2017 and $67.3 million, or $0.57 per diluted share, in Q3 2016.
Reliance's non-GAAP earnings per diluted share were $1.30 in Q3 2017, up 4.0% from $1.25 in Q3 2016. The Company's earnings numbers came in ahead of Wall Street's estimates of $1.20 per share.
Operating Metrics
During Q3 2017, Reliance's tons sold totaled 1.52 million, up 5.3% from 1.45 million in Q3 2016. The Company's tons sold were down 1.2% on a q-o-q basis. Reliance had anticipated tons sold to decline 3% to 5% as a result of the typical seasonal trend of lower shipping volumes due to customer shutdowns and vacation schedules, as well as one less shipping day in Q3 2017 compared to Q2 2017. The Company's average selling price per ton sold jumped 6.8% to $1,603 on a y-o-y basis, and was up 0.2% on a q-o-q basis.
Cash Matters
Reliance ended the quarter with a total debt outstanding of $1.99 billion, for a net debt-to-total capital ratio of 29.0%. The Company had $827.0 million available for borrowings on its $1.5 billion revolving credit facility at September 30, 2017.
Reliance's net cash provided by operating activities was $198.3 million for the nine months ended September 30, 2017, versus $387.6 million in the year ago comparable period. The Company did not repurchase any shares of its common stock in Q3 2017. At September 30, 2017, Reliance had approximately 8.4 million shares remained available for repurchase under the Company's share repurchase program.
Business Outlook
For Q4 2017, Reliance is forecasting tons sold to be down 4% to 6% on a q-o-q basis, due to a decline in shipping volumes that result from fewer shipping days due to holiday-related customer closures. The Company expects its average selling price for the upcoming quarter to be flat to down 2% compared to Q3 2017. Reliance's management is estimating earnings per diluted share to be in the range of $0.90 to $1.00 for Q4 2017.
Stock Performance Snapshot
November 30, 2017 - At Thursday's closing bell, Reliance Steel & Aluminum's stock climbed 1.03%, ending the trading session at $78.61.
Volume traded for the day: 425.87 thousand shares.
Stock performance in the last month - up 2.30%; previous three-month period - up 8.55%; and past six-month period - up 5.72%;
After yesterday's close, Reliance Steel & Aluminum's market cap was at $5.77 billion.
Price to Earnings (P/E) ratio was at 15.46.
The stock has a dividend yield of 2.29%.
The stock is part of the Basic Materials sector, categorized under the Steel & Iron industry. This sector was up 1.0% at the end of the session.
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