On February 21, after market close, Ryerson Holding Corporation (RYI) is set to unveil its fourth-quarter 2023 results, and investors are bracing themselves for the outcome. The company has a history of facing financial headwinds, with an average negative earnings surprise of 106.6% over the past four quarters. With the stock down 10.4% in the past year while the industry has seen an 11% rise, the stakes are high.
How is the company faring in the face of such challenges, and what can we expect from its quarterly report?
What Do the Estimates Say?
Ryerson Holding’s third-quarter call indicated an estimated fourth-quarter net sales range of $1.00-$1.15 billion, with an expected earnings per share in the range of 18-22 cents. Analysts project a 12.7% decline in fourth-quarter sales, with the Zacks Consensus Estimate sitting at $1,124.4 million.
Some Factors at Play
The company is anticipated to reflect sustained price weakness in the fourth quarter, following a decrease in third-quarter prices across its product mix. Moreover, it’s expected to reveal a 3-5% sequential decline in average selling prices, which is likely to impact its sales and margins. Furthermore, a decline in shipment volumes is expected, a trend that has carried over from the previous quarter due to unfavorable market conditions, changing consumer spending patterns, and slowdowns in manufacturing activities.
Ryerson Holding Corporation Price and EPS Surprise
The recent performance of Ryerson Holding Corporation’s stock seems to mirror the struggles faced by the company’s financials. With each graph and chart charting the downtrend of the stock, anxiety in the market is palpable. Investors are wading through the data, trying to anticipate the company’s next move.
Zacks Model
Despite the financial quagmire, our proven model doesn’t paint a definitive picture of an earnings beat for Ryerson Holding. An Earnings ESP of 0.00% alongside a Zacks Rank #3 doesn’t instill confidence. Earnings predictions are currently positioned at 24 cents, raising concerns among investors and analysts alike.
Stocks That Warrant a Look
For investors looking beyond Ryerson Holding, there are several companies in the basic materials sector that are showing potential for a successful quarter. Ero Copper Corp. (ERO) and Eldorado Gold Corporation (EGO) are scheduled to release their earnings soon, presenting themselves as compelling alternatives in the market.
Zacks Investment Research also offers a comprehensive list of top stocks for 2024, promising unmatched potential for investors.
