Reliance Steel (RS) Tops Q4 EPS by $1.61

Reliance Steel (NYSE: RS) reported Q4 EPS of $6.83, $1.61 better than the analyst estimate of $5.22. Revenue for the quarter came in at $3.99 billion versus the consensus estimate of $3.83 billion.

GUIDANCE:

Reliance Steel sees Q1 2022 EPS of $7.05-$7.15, versus the consensus of $5.09.

• Reliance remains optimistic about business conditions in the first quarter of 2022 with solid underlying demand across most key end markets. The Company estimates tons sold will be up 5% to 7% in the first quarter of 2022 compared to the fourth quarter of 2021 due to seasonal shipping volume increases. However, the tons sold estimate is lower than the typical first quarter expectation as a result of softer demand in January and early February attributable to continued supply chain and labor disruptions at Reliance as well as its customers and suppliers resulting from the Omicron surge. Despite significant pricing declines for carbon hot-rolled coil and sheet products, Reliance expects its average selling price per ton sold for the first quarter of 2022 to be down only 2% to 4% compared to the fourth quarter of 2021 driven by the Company’s diverse product mix, which included only about 10% of carbon hot-rolled coil and sheet product sales in 2021, and continued strength in pricing for the majority of its products and the markets into which it sells. Based on these expectations, Reliance estimates non-GAAP earnings per diluted share in the range of $7.05 to $7.15 for the first quarter of 2022.

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

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