Steel Dynamics (STLD) Q2 Guidance Worse than Feared

Goldman Sachs today maintained a Neutral rating on Steel Dynamics (NASDAQ: STLD) with a price target of $14.00. This morning Steel Dynamics provided second quarter earnings guidance in the range of $0.10 to $0.14 per diluted share. This was below the Street estimates of $0.23.

Commenting, Goldman's Sal Tharani said, "Steel Dynamics' guidance was considerably below our and consensus estimates. Although earlier weak guidance from Nucor (NYSE: NUE) and AK Steel (NYSE: AKS) had set the stage for disappointing 2Q across the board, STLD's guidance was worse than we had expected."

"While non-res construction activity is expected to continue to improve, we believe that overcapacity will impact steel mill margins for some time. Steel prices have gained some momentum in recent weeks, recovering to about $600/t for HRC, but we believe current demand levels and global steel prices will not support these price increases for long," added Tharani.

For an analyst ratings summary and ratings history on Steel Dynamics (NASDAQ: STLD) click here. For more ratings news on Steel Dynamics click here.

Shares of Steel Dynamics closed at $15.01 yesterday.

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