Schnitzer Steel preliminary FQ4 results include adjusted earnings of $0.42-$0.47/share

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Schnitzer Steel preliminary issued FQ4 results on Tuesday, which included adjusted earnings of $0. 42-$0. 47/share, not including $0. 35/share in special items.

Schnitzer Steel Industries ($NASDAQ:SCHN), Inc. is one of the largest manufacturers and exporters of recycled ferrous metals products in the United States with operations located primarily on the West Coast and in the Midwest. The company collects, processes and recycles ferrous metals from end-of-life vehicles and equipment, obsolete machinery, steel mill by-products, scrap metals and other sources.

Price History

The company attributed the strong results to higher steel shipments and improved scrap margins. Looking ahead, Schnitzer expects continued strength in its scrap business and expects to benefit from the recently enacted tax reform legislation. Shares of Schnitzer Steel jumped on the news, opening at $31.80 and closing at $32.50, up 4.3% from the previous day’s close.

VI Analysis

Schnitzer Steel Industries is a leading steel manufacturing company with a strong focus on fundamentals. The company’s cashflows and debt position are very strong, making it well-positioned to weather any economic crisis. Schnitzer Steel Industries also has a strong dividend history and has shown good growth potential.

However, the company’s profitability is relatively low compared to its peers, making it classified as a ‘cheetah’ stock. Cheetah stocks are high-growth companies that are considered less stable due to lower profitability. At the right price, they can be good investments for those seeking high capital gains.

Summary

Schnitzer Steel Industries, Inc. is a steel manufacturing and recycling company located in the United States with additional operations in Canada and Puerto Rico. The company’s primary products include ferrous scrap metal, nonferrous scrap metal, and finished steel products. The company’s stock price moved up the same day on the news.