Reliance Steel (NYSE: RS) reported Q4 EPS of $2.01, $0.01 worse than the analyst estimate of $2.02. Revenue for the quarter came in at $2.13 billion versus the consensus estimate of $2.18 billion.

GUIDANCE:

Reliance Steel sees Q1 2021 EPS of $3.40-$3.50, versus the consensus of $2.72.

• Business Outlook While macroeconomic uncertainty stemming from the COVID-19 pandemic continues, Reliance management remains optimistic about business conditions in the majority of the end markets in which it operates. Reliance anticipates overall demand will continue to improve in the first quarter of 2021. The Company estimates that tons sold will be up 10% to 12% in the first quarter of 2021 compared to the fourth quarter of 2020, which includes the normal seasonal increase in shipping volumes compared to the fourth quarter. The Company expects the currently favorable metals pricing environment, primarily for carbon and stainless steel products, to continue in the first quarter due to improving demand and the significant mill price increases that took effect in the fourth quarter of 2020 with some continuing into early 2021. As such, management estimates its average selling price per ton sold for the first quarter of 2021 will be up 12% to 14% compared to the fourth quarter of 2020. Given the strong demand and pricing fundamentals, the Company anticipates maintaining an elevated gross profit margin level in the first quarter of 2021. Based on these expectations, Reliance management currently anticipates non-GAAP earnings per diluted share in the range of $3.40 to $3.50 for the first quarter of 2021.

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