Reliance Steel (RS) Tops Q1 EPS by 27c, Q2 EPS Guidance In-Line

Reliance Steel (NYSE: RS) reported Q1 EPS of $1.30, $0.27 better than the analyst estimate of $1.03. Revenue for the quarter came in at $2.61 billion versus the consensus estimate of $2.59 billion.

Reliance Steel sees Q2 2015 EPS of $1.05-$1.15, versus the consensus of $1.10.

Business Outlook

Reliance management expects that the U.S. economy will continue to improve modestly throughout 2015. With the exception of the Company's businesses directly servicing the energy markets (estimated at approximately 8% to 10% of Reliance's sales) overall volume continues to strengthen. However, the historically high levels of metal being imported into the U.S. are expected to continue given the strong U.S. Dollar and weaker economies in other parts of the world, which will continue to put downward pressure on most metal prices. Although Reliance expects a modest increase in tons sold in the second quarter of 2015 over the first quarter of 2015, we expect downward pricing will negatively impact our average selling prices and margins. As a result, management currently expects earnings per diluted share to be in the range of $1.05 to $1.15 for the quarter ending June 30, 2015.

For earnings history and earnings-related data on Reliance Steel (RS) click here.

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