Steel Dynamics Posts Record Shipments and $6.5 Billion Revenue, but EPS Misses; Shares Fall After Hours

Steel Dynamics reported third-quarter net sales of $6.51 billion after the close on Oct. 19, up 34.8% from $4.83 billion a year earlier and 6.6% above the Zacks consensus of $6.11 billion. Earnings came to $5.26 per share, short of the $5.42 consensus and below the company's own mid-September guidance of $5.34 to $5.38. The company gave no adjusted EPS figure and no numeric fourth-quarter guidance.

Operations were stronger than the miss suggests. Steel shipments hit a record 3.8 million tons, and the average steel selling price rose $102 per ton, so the shortfall did not come from steel pricing. The weaker spots were elsewhere: metals recycling operating income fell $15 million from the prior quarter to $33 million, and the aluminum business lost about $26 million as it ramps up. Steel fabrication earned $91 million.

STLD closed the regular session up 1.9% at $245.17 before the release, per SentiSense market data, then fell in after-hours trading; reported declines ranged from about 5% to 8%. The company was scheduled to discuss results on a call at 11 a.m. ET on Oct. 20.

The quarter sets up a comparison with NUE and Cleveland-Cliffs, which jumped about 16% on its own results the same day. Watch the call for commentary on aluminum start-up losses, recycling margins and fourth-quarter steel pricing, which will decide whether the miss is a one-off or the start of margin pressure.