Steel Dynamics sees Q1 EPS $3.51-$3.55, consensus $3.35

Steel Dynamics provided first quarter 2024 earnings guidance in the range of $3.51-$3.55 per diluted share. Comparatively, the company’s sequential fourth quarter 2023 earnings were $2.61 per diluted share and prior year first quarter earnings were $3.70 per diluted share. First quarter 2024 profitability from the company’s steel operations are expected to be meaningfully stronger than sequential fourth quarter results, based on increased shipments and earnings across the platform, driven by the company’s flat rolled steel operations, including improved performance at the company’s Sinton Texas Flat Roll Division. The automotive, non-residential construction, energy, and industrial sectors continue to lead demand. First quarter 2024 earnings from the company’s metals recycling operations are also expected to be higher than sequential fourth quarter results, based on substantially stronger realized product pricing and increased volume in both ferrous and nonferrous materials. First quarter 2024 earnings from the company’s steel fabrication operations are expected to be historically strong, but lower than sequential fourth quarter results, based on seasonally lower shipments and metal spread contraction, as realized pricing declined and steel input costs increased. The non-residential construction sector remains solid, as further evidenced by steel joist and deck order backlog volume that extends into the third quarter of 2024, with historically strong associated product pricing. In addition, the continued onshoring of manufacturing, coupled with the robust U.S. infrastructure program and industrial buildouts, support strong demand in the coming years. Based on continued confidence in the company’s earnings outlook and cash flow generation, the company repurchased $279M, or 1.4%, of its common stock during the first quarter through March 11, 2024. The company’s board of directors also increased the company’s first quarter 2024 cash dividend by 8% to 46c per common share.