Schnitzer Steel Industries Forecasts $0.44 to $0.50 Adjusted Loss Per Share for Q1 of 2023
December 21, 2022
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Schnitzer Steel Industries ($NASDAQ:SCHN) is an international leader in the metals recycling industry. The company is a leading manufacturer and processor of recycled ferrous and non-ferrous metals. Schnitzer Steel has processing sites across the United States and Canada, with operations in the Pacific Northwest and British Columbia. As a publicly traded company, Schnitzer Steel is listed on the New York Stock Exchange under the ticker symbol “SCHN”. For the first quarter of fiscal 2023, Schnitzer Steel Industries anticipates a net loss between $18M and $20M, with adjusted diluted loss per share from continuing operations forecasted at $0.44 to $0.50. Schnitzer Steel Industries has implemented various cost reduction strategies to mitigate the financial effects of the pandemic, such as reducing operating expenses, furloughing employees, and suspending its dividend payments.
The company is also focusing on the optimization of its supply chain, which includes increasing efficiency and cost savings through automation. These measures have allowed the company to manage its costs effectively and maintain its strong position in the market. Despite a challenging global environment, Schnitzer Steel Industries remains confident in its outlook for fiscal 2023. The company believes that its ongoing efforts to reduce costs and optimize its supply chain will lead to improving results in the coming quarters. Schnitzer Steel remains committed to providing its customers with high-quality products and services while striving to maintain its status as an international leader in the metals recycling industry.
Market Price
This news has caused a stir in the media, as most of the sentiment has been negative so far. On Tuesday, the stock opened at $31.2 and closed at $31.7, up by 1.0% from its previous closing price of $31.4. This is a sign that investors are still optimistic about the company despite the forecasted losses. The forecasted losses may be a result of increased competition in the steel industry. With other companies offering cheaper prices and better quality, Schnitzer Steel Industries may be struggling to stay competitive. Additionally, rising production costs and decreased demand have also put pressure on the company’s profits. Schnitzer Steel Industries has also been focusing on streamlining their operations and increasing efficiencies in order to reduce costs and improve profitability.
In addition, they have been investing in technology and automation to remain competitive in the market. Despite the forecasted losses, Schnitzer Steel Industries remains confident in its ability to navigate through these challenging times and come out stronger on the other side. Their stock performance on Tuesday is indicative of this confidence, and investors are hoping that this optimism will help them rebound in the future. 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 |
| 3.49k | 168.8 | 4.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for SCHN. More…
| Operations | Investing | Financing |
| 237.68 | -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 |
| 1.83k | 868.12 | 35.4 |
Key Ratios Snapshot
Some of the financial key ratios for SCHN are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.8% | 39.5% | 6.5% |
| FCF Margin | ROE | ROA |
| 2.5% | 14.7% | 7.7% |
VI Analysis
Company fundamentals are a key indicator of the potential of a firm in the long term. To make analysis of such fundamentals easier, applications such as the VI app are available to simplify the process. According to the VI Star Chart, SCHNITZER STEEL INDUSTRIES is strong in dividends and growth, but only medium in terms of profitability and asset utilization. As such, SCHNITZER STEEL INDUSTRIES is classified as a “cheetah”—a type of company that has achieved high revenue or earnings growth but is considered less stable due to its lower profitability. Given the characteristics of SCHNITZER STEEL INDUSTRIES, investors interested in the company are likely those with an appetite for higher risk. Investors may also be interested in the company’s high health score of 10/10 with regard to cashflows and debt, allowing it to sustain future operations even in times of crisis. Overall, SCHNITZER STEEL INDUSTRIES is a company that has demonstrated potential for high growth and dividends but must be approached with caution due to its lower profitability and asset utilization. Investors interested in such companies should carefully assess the risks involved before making an investment. More…
VI 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
Investing in Schnitzer Steel Industries (SCHNITZER) can be a risky venture. Despite the forecast of a potential loss in the first quarter of 2023, the company has a long history of success and growth. SCHNITZER has traditionally been a reliable company for investors, as its share prices have steadily grown over the past few years. The company has also made smart investments in other industries, such as recycling and auto parts, which have allowed them to diversify their portfolio and mitigate risk. The current media sentiment surrounding SCHNITZER is mostly negative, which could be a deterrent for some investors.
However, it is important to remember that the company’s financial forecast for the first quarter of 2023 is only an estimate, and the future may look different than expected. SCHNITZER has made several strategic moves to help ensure its long-term success. They have invested heavily in research and development, which has resulted in more efficient production processes and increased profitability.
Additionally, they have implemented a number of sustainability initiatives to reduce their environmental impact and ensure their products meet the highest standards. In short, investing in SCHNITZER may be a risky venture, but it could also be an excellent opportunity for investors who are willing to take on the challenge. The company has a long history of success, and with the right strategy, it could be a great long-term investment.
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