Reliance Steel (NYSE: RS) reported Q1 EPS of $4.10, $0.59 better than the analyst estimate of $3.51. Revenue for the quarter came in at $2.84 billion versus the consensus estimate of $2.78 billion.

GUIDANCE:

Reliance Steel sees Q2 2021 EPS of $4.20-$4.40, versus the consensus of $3.27.

• While macroeconomic uncertainty stemming from the COVID-19 pandemic continues, Reliance management continues to remain optimistic about business conditions and strong underlying demand in the majority of the end markets in which it operates. However, factors impacting shipment levels in the first quarter of 2021 such as metal supply constraints and supply chain disruptions for many of Reliance’s customers will continue to persist in the second quarter of 2021. Despite these factors, the Company estimates its tons sold will be flat to up 2.0% in the second quarter of 2021 compared to the first quarter of 2021. The Company expects metal pricing will remain near current levels, with the potential for further upside in certain products. Since current metal prices are substantially higher than the average selling price in the first quarter of 2021, management estimates its average selling price per ton sold for the second quarter of 2021 will be up 5% to 7%. Given the strong demand and pricing fundamentals, the Company anticipates continued strength in its gross profit margin in the second quarter of 2021. Based on these expectations, Reliance management currently anticipates non-GAAP earnings per diluted share in the range of $4.20 to $4.40 for the second quarter of 2021.

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