Steel Dynamics Inc (STLD) has delivered a strong performance in the third quarter, surpassing both earnings and revenue expectations. The company reported GAAP earnings of $2.05 per share, exceeding market estimates of $1.97 per share. Revenue for the quarter came in at $4.34 billion, outperforming expectations of $4.177 billion.
This positive performance was attributed to strong results across all of the company’s platforms. Co-Founder, Chairman, and Chief Executive Officer Mark D. Millett highlighted the company’s impressive financial performance, stating, “The teams achieved a solid third quarter 2024 performance across the platforms, with adjusted EBITDA of $557 million and cash flow from operations of $760 million.”
This robust financial position has enabled Steel Dynamics to increase its liquidity to $3.1 billion. Furthermore, the company invested $621 million in internal growth initiatives and distributed $381 million to shareholders through dividends and share repurchases. Millett emphasized the company’s commitment to high returns on invested capital, noting that their three-year after-tax return-on-invested capital stands at a remarkable 26 percent.
Following the release of these strong earnings, several analysts adjusted their price targets for Steel Dynamics. BMO Capital analyst Katja Jancic maintained a Market Perform rating but raised the price target from $130 to $135. Meanwhile, JP Morgan analyst Bill Peterson maintained a Neutral rating and increased the price target from $129 to $134.
These adjustments reflect the positive sentiment surrounding Steel Dynamics’ performance and its strong financial position. The company’s ability to exceed expectations and generate significant cash flow has solidified its position in the market and attracted the attention of investors. With its robust financial foundation and commitment to growth initiatives, Steel Dynamics is well-positioned for continued success in the coming quarters.
