RELIANCE STEEL & ALUMINUM Reports Second Quarter Fiscal Year 2023 Earnings Results

🌥️Earnings Overview

On July 27, 2023, RELIANCE STEEL & ALUMINUM ($NYSE:RS) reported their earnings results for the second quarter of fiscal year 2023, ending June 30, 2023. There was a total revenue of USD 3880.3 million, a 17.1% decrease from the same period in the previous year. Furthermore, their net income dropped 32.8% year-over-year to USD 385.1 million.

Stock Price

On Thursday, RELIANCE STEEL & ALUMINUM stock opened at $286.9 and closed at $280.6, down by 3.4% from its previous closing price of $290.4. This comes after the company reported its financial results for the second quarter of fiscal year 2023. RELIANCE STEEL & ALUMINUM attributed the increases to higher volumes, improved margins, and benefits from acquisitions.

These investments are expected to result in increased production capacity and improved product offerings. The increase in sales and income, as well as strategic investments, are expected to lead to further growth in the future. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for RS. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for RS. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for RS. More…

Key Ratios Snapshot

Some of the financial key ratios for RS are shown below. More…

Analysis

At GoodWhale, we have taken an in-depth look at the financials of RELIANCE STEEL & ALUMINUM. We have concluded that their financial and business performance indicate a low risk investment. We understand that investors want to understand the potential risks before investing in any company. Therefore, we have provided an overview of the areas with higher risks. We invite all registered users to take a closer look at these areas and make an informed investment decision. At GoodWhale, we believe that understanding the potential risks associated with an investment is important in order to make the right decision. We are confident that our analysis of RELIANCE STEEL & ALUMINUM will help you make a well-informed decision about your investment. More…

Peers

Reliance Steel & Aluminum Co., Universal Stainless & Alloy Products Inc., Jiangsu Shagang Co Ltd, and Xinjiang Ba Yi Iron & Steel Co Ltd are all steel and aluminum companies. They all have their own unique offerings, but they compete with each other in the market.

– Universal Stainless & Alloy Products Inc ($NASDAQ:USAP)

Universal Stainless & Alloy Products Inc is a company that manufactures and sells stainless steel and nickel alloy mill products. The company has a market cap of 65.99M as of 2022 and a Return on Equity of -1.12%. Universal Stainless & Alloy Products Inc is a publicly traded company on the NASDAQ Stock Market under the ticker symbol “USAP”.

– Jiangsu Shagang Co Ltd ($SZSE:002075)

Jiangsu Shagang Co., Ltd. is a Chinese state-owned steel producer. The company is based in Zhangjiagang, Jiangsu Province, and is listed on the Shanghai Stock Exchange. Jiangsu Shagang is one of the largest private steel companies in China, with an annual output of over 20 million tons of steel. The company produces a wide range of steel products, including hot and cold rolled coils, galvanized sheets, and stainless steel products. In addition to its steel operations, Jiangsu Shagang also has businesses in coal mining, power generation, and real estate development.

– Xinjiang Ba Yi Iron & Steel Co Ltd ($SHSE:600581)

Xinjiang Ba Yi Iron & Steel Co Ltd has a market cap of 5.58B as of 2022, a Return on Equity of -24.16%. The company is engaged in the production and sale of iron and steel products. It is one of the largest iron and steel companies in China. The company’s products are used in a variety of industries, including construction, automotive, machinery manufacturing, and shipbuilding.

Summary

Investors were disappointed with Reliance Steel & Aluminum’s second quarter earnings results for the fiscal year 2023, which showed a 17.1% decrease in revenue from the same period last year and a 32.8% decrease in net income. The stock price reacted accordingly, dropping on the same day the report was released. Although the company’s current performance is grim, investors should consider the longer-term prospects of this reliable steel and aluminum producer before making any decisions. Analysts suggest that Reliance Steel & Aluminum’s long-term prospects remain intact, as its focus on cost optimization and technological improvements should lead to improved earnings in the future.