SCOTTSDALE, Ariz. - Reliance Steel & Aluminum Co. (NYSE:RS) reported third-quarter earnings that narrowly missed estimates but beat on revenue, sending shares up 1.58% in early trading Thursday.
The metal solutions provider posted adjusted earnings per share of $3.64, falling short of the $3.67 analyst consensus. However, revenue came in at $3.42 billion, surpassing expectations of $3.38 billion.
Reliance's sales declined 5.6% YoY but tons sold increased 7.1% compared to the same quarter last year. The company attributed the higher shipments to its strategic growth efforts, which helped offset lower metals pricing.
"Our businesses continued to execute well through challenging market conditions in the third quarter, once again outperforming the industry in shipments while maintaining a gross profit margin within our sustainable range," said CEO Karla Lewis.
For the fourth quarter, Reliance forecasts adjusted EPS of $2.65 to $2.85, below the $3.41 analyst consensus. The company expects shipments to decline 6-8% sequentially due to normal seasonality and economic uncertainty.
The company generated $463.9 million in operating cash flow and repurchased $432 million of stock during the quarter. Reliance maintained its quarterly dividend of $1.10 per share.
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