Steel Dynamics stock rises after company offers consensus-beating guidance for Q4

Steel Dynamics Inc.'s stock (STLD) rose 1.6% early Friday, after the company offered fourth-quarter guidance that is ahead of consensus. Fort Wayne, Indiana-based Steel Dynamics said it expects per-share earnings to range from $2.60 to $2.64 for the quarter, down from $3.61 a year ago and the $3.47 booked in the third-quarter. But the number is well ahead of the $2.43 FactSet consensus. "Fourth quarter 2023 profitability from the company's steel operations is expected to be lower than sequential third quarter results, based on steady shipments and metal spread contraction as lower realized flat rolled steel pricing more than offset lower scrap costs," the company said. "Steel order activity remains solid as evidenced by extended order lead times and recent pricing increases heading into the first quarter of 2024." The metals recycling business's fourth-quarter earnings are expected to be comparable to the third quarter, while the steel fabrication business is expected to be lower, based on lower shipments and metal spread compression. The company plans to report fourth-quarter earnings on Jan. 23 after market close. The stock has gained 22% in the year to date, while the S&P 500 has gained 23%.

-Ciara Linnane

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12-15-23 0830ET

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