Reliance Steel (RS) Misses Q3 EPS by 7c; Guides Lower

Reliance Steel (NYSE: RS) reported Q3 EPS of $1.25, $0.07 worse than the analyst estimate of $1.32. Revenue for the quarter came in at $2.19 billion versus the consensus estimate of $2.22 billion.

GUIDANCE:

Reliance Steel sees Q4 2016 EPS of $0.65-$0.75, versus the consensus of $1.03.

Reliance management continues to believe the U.S. economy is generally healthy and anticipates a continued slow recovery. However, given increased uncertainty in the market at this time, along with normal seasonal patterns that result in fewer shipping days in the fourth quarter due to holiday-related customer closures, the Company is cautious in regard to both business activity levels and metals pricing in the fourth quarter of 2016. Reliance management estimates tons sold to be down 5% to 7% in the fourth quarter of 2016 compared to the third quarter of 2016. Further, management believes that metals pricing for most of the Company’s products will experience continued downward pressure in the fourth quarter of 2016 and therefore expects its average selling price will be down 1% to 3% from the third quarter of 2016.

For earnings history and earnings-related data on Reliance Steel (RS) click here.

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