Steel Dynamics Q3 Pre-Announcement Is Nothing Unusual

Summary Steel Dynamics pre-announced a Q3 EPS of $5.34–$5.38, well above prior quarters, driven by metal margin expansion and record steel shipments. STLD expects Q3 revenues of $6.42B, up 5.5% sequentially and 33% year-over-year, with strong demand across non-residential construction, energy, automotive, and industrial markets. Steel fabrication and aluminum operations are set to improve, with fabrication backlog nearly 50% higher year-over-year and all three aluminum cold mills now operational. Despite a share price dip on guidance, I view the reaction as overdone and anticipate a potential Q3 beat but will monitor sustainability of steel spreads and end-market diversification before investing. Studia72/iStock via Getty Images Steel Dynamics ( STLD ), in a typical fashion, announced its Q3 EPS guidance, and on that news, its share price took a tumble, which I think is going to be temporary. I wanted to go over the pre-announcement and what to This article was written by Gytis Zizys 4.87K Followers Follow MSc in Finance. Long-term horizon investor mostly with 2-5 year horizon. I like to keep investing simple. I believe a portfolio should consist of a mix of growth, value, and dividend-paying stocks but usually end up looking for value more than anything. I also sell options from time to time. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.