Olympic Steel Q2 sales beat expectations at $496 mln
Overview
Olympic Steel Q2 sales beat analyst expectations at $496 mln, per LSEG data
Net income for Q2 declines to $5.2 mln, adjusted EBITDA also down yr/yr
Company remains focused on growth initiatives and acquisitions
Outlook
Olympic Steel expects sales growth from new processing and automation equipment
Company remains focused on organic growth and strategic acquisitions
Result Drivers
SEQUENTIAL EBITDA INCREASE - Despite declining market demand, co achieved sequential increase in adjusted EBITDA, attributed to strategic actions and operational disciplines
TARIFF IMPACT - Positive trend in stainless and aluminum pricing following June tariff announcement, leading to increased inquiries for outsourced fabrication work
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Beat | $496 mln | $491.10 mln (3 Analysts) |
Q2 EPS |
| $0.45 |
|
Q2 Net Income |
| $5.20 mln |
|
Q2 Adjusted EBITDA |
| $20.30 mln |
|
Q2 Dividend |
| $0.16 |
|
Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the iron & steel peer group is "buy."
Wall Street's median 12-month price target for Olympic Steel Inc is $40.00, about 19.7% above its July 30 closing price of $32.10
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 13 three months ago
Press Release: ID:nBw8WtRkha
