(STLD) - Steel Dynamics, Inc - exceeded earnings estimates in four consecutive quarters. Year-over-year growth exceeded 130% in its latest quarter

Steel Dynamics, Inc., has exceeded earnings estimates in four consecutive quarters. Year-over-year growth exceeded 130% in its latest quarter. Six analysts have raised their estimates for this year, while four have done so for next year. Over the past 30 days, this year's estimates have increased 27 cents to $7.49 per share. The company sports a return on equity (ROE) of 34%, ahead of the industry average of 28%. Full Analysis Steel Dynamics, Inc. (STLD) is a steel manufacturing company in the United States. The company operates in two segments: steel operations and steel scrap substitute operations. STLD's customer base includes steel service centers, pipe and tube producers, original equipment manufacturers, steel fabricators, cold finishers, forgers and intermediate processors. In mid-October, the company said third-quarter profit more than doubled on an 83% increase in revenue. Steel Dynamics earned $118.7 million, or $2.17 per share, compared with $45.4 million, or 92 cents per share, for the same quarter in 2005. Revenue grew to $911.9 million from $498.7 million in the year-ago period. Analysts expected $2.10 per share. STLD stuck with its fourth-quarter profit prediction of $2.10 to $2.20 per share, although the company expects shipping volume to be lower in the quarter because of planned maintenance. Analysts, on average, expect fourth-quarter profit of $1.99 per share for Steel Dynamics. As would be expected, the CEO had great things to say about the quarter: "The third quarter was an excellent quarter, setting company records for revenue and earnings," said Keith Busse, President and CEO of Steel Dynamics. "Three of our steel-making divisions, Structural and Rail, Engineered Bar Products, and the Roanoke Bar division, set new tonnage shipping records in the third quarter.” The company said this week its board approved a 2-for-1 stock split. The split will be paid through a stock dividend. It will double the number of authorized common shares to 200 million, up from 100 million. The company expects to distribute the shares on, or around, Nov. 20. to shareholders on record as of Nov. 9. STLD has exceeded earnings estimates in four consecutive quarters. Year-over-year growth exceeded 130% in its latest quarter. Six analysts have raised their estimates for this year, while four have done so for next year. Over the past 30 days, this year's estimates have increased 27 cents to $7.49 per share. The company sports a return on equity (ROE) of 34%, ahead of the industry average of 28%. The stock is cheap at 8x this year's estimates of $7.49 per share. This is below the company's projected long-term growth rate of 10.33%, giving the stock a PEG ratio of 0.78. 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