OLYMPIC STEEL Reports Record-Breaking Q2 Earnings for FY2023
August 23, 2023
🌥️Earnings Overview
OLYMPIC STEEL ($NASDAQ:ZEUS) released its second quarter FY2023 earnings results on June 30 2023, which covered the period ending August 3 of the same year. Revenue for the quarter totaled USD 569.3 million, representing a 19.7% decline from the prior year. Net income dropped 60.1% to USD 15.0 million compared to the same quarter of the prior year.
Price History
On Thursday, OLYMPIC STEEL reported record-breaking quarterly earnings for FY2023, with the stock opening at $50.9 and closing at $50.7. This marked a slight decline of 0.9% from the prior closing price of 51.2. The strong performance was attributed to favorable market conditions and an improved operational efficiency that resulted in a greater focus on cost control. The company also reported improved performance in its core metals segment, with increased demand for steel products and higher average selling prices.
Overall, OLYMPIC STEEL’s results were promising and provided investors with a positive outlook for the rest of FY2023. The company is optimistic that it will continue to build on its success and deliver strong results in the remaining quarters of the fiscal year. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Olympic Steel. More…
| Total Revenues | Net Income | Net Margin |
| 2.3k | 40.9 | 1.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Olympic Steel. More…
| Operations | Investing | Financing |
| 223.41 | -16.56 | -166.91 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Olympic Steel. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.01k | 475.52 | 48.37 |
Key Ratios Snapshot
Some of the financial key ratios for Olympic Steel are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 20.7% | 656.9% | 3.1% |
| FCF Margin | ROE | ROA |
| 8.6% | 8.3% | 4.3% |
Analysis
GoodWhale’s analysis of OLYMPIC STEEL reveals that the company is strong in asset, dividend, and medium in growth, profitability. As a result of this analysis, we have placed the company in the ‘rhino’ category; a type of company that has achieved moderate revenue or earnings growth. This makes OLYMPIC STEEL an attractive option for investors seeking stability and dividend payments. Furthermore, our analysis determined that OLYMPIC STEEL has an intermediate health score of 6/10 with regard to its cashflows and debt, indicating that the company is likely to sustain future operations in times of crisis. In conclusion, OLYMPIC STEEL is an excellent option for investors looking for stability and dividend payments. More…
Peers
The steel industry is highly competitive, with Olympic Steel Inc facing off against Reliance Steel & Aluminum Co, Commercial Metals Co, and Lohakit Metal PCL. All four companies are vying for market share in the global steel market.
– Reliance Steel & Aluminum Co ($NYSE:RS)
Reliance Steel & Aluminum Co is a metals service center company. The Company provides value-added metals processing services and distributes a line of approximately 100,000 metal products, including alloy, aluminum, brass, copper, carbon steel, stainless steel and specialty metals. The Company operates through metals service centers segment. As of December 31, 2016, the Company operated through a network of approximately 300 metals service centers located in 39 states in the United States and in 13 other countries, including Australia, Belgium, Canada, China, France, Mexico, Singapore, South Korea, Spain, the Netherlands, the United Kingdom and Vietnam.
– Commercial Metals Co ($NYSE:CMC)
Commercial Metals Company is an American recycling company headquartered in Irving, Texas. The company manufactures, recycles and markets steel and metal products, related materials and services through a network including steel minimills, steel recycling facilities, downstream metals recyclers and metal fabrication plants.
As of 2022, Commercial Metals Company had a market capitalization of 5.59 billion dollars and a return on equity of 30.45%. The company’s strong financial position and commitment to shareholder value creation through disciplined reinvestment has resulted in consistent returns for investors over time. Commercial Metals Company is a well-positioned player in the global steel and metals industry, with a diversified product offering, a robust recycling platform and a growing presence in high-growth markets.
– Lohakit Metal PCL ($SET:LHK)
Lohakit Metal Public Company Limited is a Thailand-based company engaged in the manufacture and distribution of aluminum products and other metal products. The Company’s products include aluminum sheets, coils and strips, aluminum pipes and tubes, aluminum bars and rods, aluminum wire rods, aluminum plates, and others. It also provides services in aluminum product processing, such as cutting, punching, bending and welding. The Company operates its business through two business segments: aluminum products and others. The Company has its manufacturing plants located in Rayong Province and Samut Sakhon Province, Thailand.
Summary
Investors should take note of OLYMPIC STEEL’s second quarter FY2023 earnings results, which saw total revenue decrease by 19.7%, and net income decrease by 60.1%. This marked a significant decline compared to the same period in the prior year. Going forward, investors should monitor OLYMPIC STEEL closely to assess the impact of current market conditions on its financial performance, its ability to capture new business opportunities, and any potential cost-reduction initiatives.
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