Schnitzer Steel Industries Reports Third Quarter Earnings Results for FY2023
July 5, 2023
🌥️Earnings Overview
SCHNITZER STEEL INDUSTRIES ($NASDAQ:SCHN) released their earnings results for the third quarter of FY2023 on June 27 2023, as of May 31 2023. The company reported a total revenue of USD 809.6 million, a 19.8% decrease compared to the previous year. Moreover, net income declined by 82.0%, amounting to USD 13.5 million.
Price History
Schnitzer Steel Industries (SCHNITZER) reported its earnings results for fiscal year 2023 on Tuesday. At the opening of trading, SCHNITZER stock was priced at $31.0, which was down 3.2% from the previous closing price of $31.7. At the end of the trading session, SCHNITZER stock closed at $30.7. The financial results for fiscal year 2023 showed an increase in revenue and profits, but the overall performance failed to meet expectations and SCHNITZER’s stock price fell as a result.
However, these results were below analyst estimates and SCHNITZER’s stock price fell in reaction. SCHNITZER also reported a decrease in cash flow from operations compared to the third quarter of fiscal year 2022. These results further weighed on SCHNITZER’s stock price. Overall, SCHNITZER reported positive earnings results for the third quarter of fiscal year 2023, but failed to meet analyst expectations. The company’s stock price declined as a result, closing at $30.7 on Tuesday. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for SCHN. More…
| Total Revenues | Net Income | Net Margin |
| 3.06k | 10.38 | 0.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for SCHN. More…
| Operations | Investing | Financing |
| 250.65 | -316.15 | 94.57 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for SCHN. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.87k | 926.84 | 34.02 |
Key Ratios Snapshot
Some of the financial key ratios for SCHN are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 19.4% | 14.6% | 1.0% |
| FCF Margin | ROE | ROA |
| 3.1% | 2.0% | 1.0% |
Analysis
At GoodWhale, we have conducted an assessment of SCHNITZER STEEL INDUSTRIES’ fundamentals. After careful analysis, we have determined that this company is a low risk investment in terms of financial and business aspects, giving it a Risk Rating of Low. However, we did notice two risk warnings on their income sheet and balance sheet. If you would like to look into these further, please register on goodwhale.com to check it out. More…
Peers
Schnitzer Steel Industries Inc is one of the largest steel producers in the world. Its competitors include Daido Steel Co Ltd, FENG HSIN STEEL CO LTD, and Bengang Steel Plates Co Ltd.
– Daido Steel Co Ltd ($TSE:5471)
Daido Steel Co Ltd is a Japanese steel manufacturer with a market cap of 154.52B as of 2022. The company has a Return on Equity of 7.71%. Daido Steel Co Ltd produces a wide range of steel products, including stainless steel, carbon steel, and alloy steel. The company also manufactures and sells steel products for use in construction, shipbuilding, automotive, and other industries.
– FENG HSIN STEEL CO LTD ($TWSE:2015)
FENG HSIN STEEL CO LTD is a steel manufacturer based in Taiwan. The company has a market capitalization of 34.08 billion as of 2022 and a return on equity of 15.9%. Feng Hsin Steel Co Ltd produces a variety of steel products including hot rolled coils, cold rolled coils, and hot dip galvanized coils. The company also produces steel pipes and tubes, wire rods, and other steel products. Feng Hsin Steel Co Ltd has a production capacity of 2.8 million tons of steel products per year.
– Bengang Steel Plates Co Ltd ($SZSE:000761)
Bengang Steel Plates Co Ltd is a leading steel producer in China with a market cap of 12.33B as of 2022. The company has a Return on Equity of 5.86%. Bengang Steel Plates Co Ltd produces a variety of steel products including plates, coils, sheets, and pipes. The company is vertically integrated and has a diversified customer base.
Summary
Schnitzer Steel Industries recently released its third quarter earnings for FY2023 with total revenue of USD 809.6 million, a 19.8% decrease from the previous year. Net income also decreased by 82.0% to USD 13.5 million. This resulted in the stock price dropping on the same day.
Investors should be aware of Schnitzer’s poor earnings performance and weigh this against potential future gains in order to make an informed investment decision. It is important to consider current market conditions and research the company’s long-term prospects before investing.
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