(STTX) - Steel Technologies, Inc. - Blew away the Street's estimate on Jul 25 and surprised to the upside by 73.1%

Steel Technologies, Inc. (STTX), which is a Zacks #1 Rank stock, topped the Street's earnings estimate in 10 out of the past 12 quarters by an average margin of 24.0%. Consensus estimates have been shooting upward. STTX has a price-to-book ratio of only 1.1, significantly lower when compared to 5.2 for the market. The company is currently yielding 1.4% and has a five-year average dividend yield of 1.3%. Full Analysis Steel Technologies, Inc. is one of the largest independent steel processors in North America. The company processes precision flat-rolled products for various industries such as: automotive, appliance, lawn and garden, agricultural, office equipment and railcar industries. Over the past 12 quarters, STTX exceeded analysts' earnings expectations on 10 occasions, while meeting and missing once. The company's average margin of surprise during this period of time was 24.0%. Earnings per share grew 20.2% over the past five years. For the third quarter of fiscal 2006, analysts were calling for profits of 26 cents per share. STTX blew away the Street's estimate on Jul 25 and surprised to the upside by 73.1% with earnings per share of 45 cents. The result was a penny better than earnings in the prior-year period. The company's tons sold jumped 2%, while toll processing tonnage shipped increased 69% year over year. Chairman and Chief Executive Officer Bradford T. Ray stated that the company's acquisition of automotive steel supplier Kasle Steel “made an immediate and positive contribution to our performance in the third quarter.” He went on to state, “We remain very excited about the impact of and prospects for this acquisition.” The privately-held firm was purchased for $49 million in early May. Consensus estimates have skyrocketed over the past 60 days. Profit forecasts for this quarter and next quarter soared 157.9% and 135.3%, respectively. For the full years of 2006 and 2007, estimates are up 69.1% and 89.5%, respectively, over the same period of time. The Board of Directors declared a semi-annual cash dividend of 15 cents per share on Apr 28. The company has a current dividend yield of 1.4% and a five-year average dividend yield of 1.3%. STTX is currently trading at a valuation of 15.3x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 15.5x its current fiscal-year estimated earnings. The company has a price-to-book ratio of only 1.1, significantly lower when compared to 5.2 for the market. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home