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Steel Dynamics’ 1Q16 Earnings: Everything You Need to Know

Mark O'Hara

Why Steel Dynamics Managed to Boost Its Earnings in 1Q16

Steel Dynamics’ 1Q16 earnings

Steel Dynamics (STLD) released its 1Q16 earnings yesterday after trading hours. The company reported adjusted earnings per share or EPS of $0.26, which is significantly above the sequential 4Q15 EPS of $0.09. The company’s 1Q16 EPS were higher than consensus estimates as well as its own guidance, as you can see in the graph below.

1Q16 earnings season

Note that Steel Dynamics is the first major steel company to release its 1Q16 earnings. Nucor (NUE) is expected to release its 1Q16 financial results today. U.S. Steel Corporation (X) and AK Steel (AKS), which have seen big rallies in 1Q16, are scheduled to release their 1Q16 earnings on April 26.

Series overview

In this series, we’ll look at Steel Dynamics’ 1Q16 earnings. We’ll analyze how the key financial metrics fared in the quarter. Note that 1Q16 earnings and 2016 guidance are crucial for some of the steel companies to justify their recent rally. Markets expect metals and mining companies to deliver fairly well in the quarter. These expectations are unlike 4Q15 earnings season, when market expectations for earnings were quite modest. So it’s not surprising that Steel Dynamics, like Alcoa, received a lukewarm market response after the earnings release even after posting better-than-expected EPS.

In the next part of this series, we’ll take a closer look at Steel Dynamics’ 1Q16 financial results.

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