SCHN - Schnitzer Steel Industries, Inc - Ahead of the company's fiscal third-quarter report, brokerage analysts are raising their forecasts

Schnitzer Steel Industries, Inc. (SCHN) exceeded analysts� earnings expectations in three out of the past four quarters by an average margin of 20.4%. Consensus earnings estimates are up over the past 60 days for this Zacks #1 Rank stock. The company has returned value to shareholders through both stock buybacks and dividend payments. SCHN has a price-to-book ratio of 2.7, compared to 4.5 for the market. Full Analysis Schnitzer Steel Industries, Inc. engages in recycling ferrous and nonferrous metal, and used and recycled auto parts, as well as in manufacturing finished steel products in the United States and internationally. The company has 32 operating facilities located in 11 states throughout the country. SCHN's steel manufacturing business produces over 750,000 tons on an annual basis. SCHN topped the Street's earnings estimate in three out of the past four quarters by an average margin of 20.4%. In all three of the aforementioned quarters, the company surprised by a double-digit percentage. On Jul 9, SCHN posted third-quarter fiscal 2007 profits of $1.47 per share. The result easily surpassed the consensus estimate of $1.07 by 37.4%. Compared to earnings of $1.11 per share in the prior-year period, the result marked a 32.4% year-over-year improvement. Revenues ballooned 40.3% to $709.4 million from $505.6 million in the third quarter of fiscal 2006. Ahead of the company's fiscal third-quarter report, brokerage analysts are raising their forecasts. During the past 30 days, the consensus earnings estimate has risen by nine cents to $1.35 per share. Revisions were made by two out of the three covering analysts. SCHN has also returned value to shareholders through stock buybacks. Year to date, the company has repurchased 1.5 million shares, or approximately 5% of its total shares outstanding. Under its current repurchase authorization SCHN may buy back an additional 3.2 million shares. SCHN also yields a dividend of 0.1%. The last quarterly dividend, 1.7 cents per share, was paid on Aug 23. SCHN is currently trading at a valuation of 15.9x fiscal 2008 earnings. The company has a price-to-book ratio of 2.7, compared to 4.9 for the market. 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