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Ryerson Holding (RYI) to Report Q4 Earnings: What's in Store?

Ryerson Holding Corporation RYI is slated to release fourth-quarter 2020 results after the closing bell on Feb 24. Benefits of higher prices and shipment volumes are likely to reflect on its fourth-quarter results.

The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 208.7%. It posted an earnings surprise of 675% in the last reported quarter.

The stock has rallied 70.3% in the past year compared with the industry’s 45.2% rise.

 


 

 

Let’s see how things are shaping up for this announcement.

What do the Estimates Say?

The Zacks Consensus Estimate for fourth-quarter revenues for Ryerson Holding is currently pegged at $898.2 million, which calls for a decline of 6.6% year over year.

Some Factors at Play

The company is likely to have benefited from higher volumes and prices in the fourth quarter. It is seeing a recovery in demand and pricing conditions as witnessed in the third quarter. The company’s average selling prices were up 1.7% while tons shipped rose 5.8% on a sequential comparison basis in the third quarter. The trend is likely to have continued in the fourth quarter.

Ryerson Holding, in its third-quarter call, said that it saw higher average selling prices and volumes in the first several weeks of the fourth quarter compared with the third quarter on restocking driven demand across a greater number of end markets and improved industrial metal commodity prices. Both North American average selling prices and per-day shipping volumes trended higher relative to the third quarter, the company noted. As such, higher shipping volumes and selling prices are likely to have provided support to its top line and margins in the December quarter.

 

Ryerson Holding Corporation Price and EPS Surprise

 

Ryerson Holding Corporation price-eps-surprise | Ryerson Holding Corporation Quote

 

Zacks Model

Our proven model does not conclusively predict an earnings beat for Ryerson Holding this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.

Earnings ESP: Earnings ESP for Ryerson Holding is 0.00%. The Zacks Consensus Estimate for earnings for the fourth quarter is currently pegged at 42 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Ryerson Holding currently carries a Zacks Rank #3.

Stocks That Warrant a Look

Here are some companies in the basic materials space you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:

Koppers Holdings Inc. KOP, scheduled to release earnings on Feb 24, has an Earnings ESP of +23.20% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Kirkland Lake Gold Ltd. KL, scheduled to release earnings on Feb 25, has an Earnings ESP of +5.57% and carries a Zacks Rank #3.
 
Franco-Nevada Corporation
FNV, scheduled to release earnings on Mar 10, has an Earnings ESP of +1.79% and carries a Zacks Rank #3.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

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FrancoNevada Corporation (FNV): Free Stock Analysis Report
 
Koppers Holdings Inc. (KOP): Free Stock Analysis Report
 
Ryerson Holding Corporation (RYI): Free Stock Analysis Report
 
Kirkland Lake Gold Ltd. (KL): Free Stock Analysis Report
 
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