NASDAQ$ZEUS

Olympic Steel Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Olympic Steel's financial performance was driven by diversification strategy and operational discipline amidst shifting market conditions.

Olympic Steel reported a net income of $12.0 million, or $1.04 per diluted share, for the third quarter of 2022. Sales totaled $634 million. The company reduced debt by $84 million so far this year.

  • Net income for the third quarter totaled $12.0 million, or $1.04 per diluted share.
  • Sales totaled $634 million in the third quarter of 2022.
  • Adjusted EBITDA for the third quarter of 2022 was $25.3 million.
  • The company reduced debt by $84 million so far this year.

Headline financials

Total Revenue

$634M

Previous: $668M-5.1%
EPS (adj)

$1.14

Previous: $4.09-72.1%
Adjusted EBITDA

$25.3M

Previous: $70.5M-64.2%
Capital Expenditures

-$14M

Previous: -$7.74M-80.4%
Free Cash Flow

$84.3M

Previous: -$135M+162.6%
Net Income

$12M

Previous: $44.5M-73.0%
Operating Income

$19.1M

Previous: $62.2M-69.3%
Gross Profit

-$527M

Previous: -$521M-1.3%
Cash & Equivalents

$10.2M

Previous: $15.1M-32.4%
Total Assets

$1.04B

Previous: $971M+6.8%
Stock-Based Comp

$335K

Previous: $258K+29.8%

Revenue & EPS history

Olympic Steel · Revenue · Quarterly

$634M

Q3 2022-5.1%vs Q3 2021
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

Olympic Steel · $634M total across 3 segments · Q3 2022

  • Carbon Flat Products
    $336M-16.9%
  • Specialty Metals Flat Products
    $188M+14.7%
  • Tubular and Pipe Products
    $110M+10.2%

Forward guidance

While we expect metals pricing to decline further and pressure profit margins in the fourth quarter, we are confident that we have reduced the impact of market cyclicality on our business. We anticipate strong cash flows and further debt reduction in the fourth quarter. We have significant capital to continue our diversification strategy by investing in additional acquisitions, new capacity, and efficiency through automation to deliver value to our shareholders.

Tailwinds

  • Expect metals pricing to decline further
  • Confident that reduced the impact of market cyclicality on our business
  • Anticipate strong cash flows
  • Anticipate further debt reduction in the fourth quarter
  • Have significant capital to continue our diversification strategy

Headwinds

  • Metals pricing to decline further
  • Pressure profit margins in the fourth quarter
  • Ongoing supply chain constraints
  • Labor shortages
  • Inflation continued

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 8 quarterly earnings reports

Historical avg

+0.2%

Avg return

Earnings day

-4.2%

Avg return

5 days after

-3.4%

Avg return

30 days after

50%

32 / 64 earnings

Positive

+45.6%

Q1 2015

Best reaction

-15.4%

Q2 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025
Q3 2025+0.0%-1.4%+8.5%
Q2 2025+1.3%-1.9%+8.4%
Q1 2025+9.2%+0.4%-7.3%
Q4 2024+3.3%-1.8%-13.2%
Q3 2024-5.0%+2.9%+15.9%
Q2 2024-11.5%-14.1%-20.5%
Q1 2024-9.2%-16.2%-17.8%
Q4 2023+0.3%-1.8%-1.5%
Q3 2023-5.2%
Q2 2023+5.1%
Q1 2023-1.3%
Q4 2022+0.9%
Q3 2022+7.8%
Q2 2022+2.5%
Q1 2022-7.1%
Q4 2021+14.4%
Q3 2021-2.8%
Q2 2021+10.0%
Q1 2021+7.7%
Q4 2020-6.9%
Q3 2020+6.5%
Q2 2020+0.5%
Q1 2020-0.2%
Q4 2019+3.7%
Q3 2019-5.9%
Q2 2019-4.2%
Q1 2019+10.0%
Q4 2018-5.4%
Q3 2018-0.2%
Q2 2018+2.5%
Q1 2018-4.7%
Q4 2017-7.3%
Q3 2017+5.1%
Q2 2017+2.1%
Q1 2017+19.6%
Q4 2016-9.6%
Q3 2016-12.2%
Q2 2016-15.4%
Q1 2016+11.4%
Q4 2015+1.2%
Q3 2015+0.3%
Q2 2015+5.1%
Q1 2015+45.6%
Q4 2014+8.2%
Q3 2014-8.4%
Q2 2014-5.3%
Q1 2014-3.2%
Q4 2013+0.7%
Q3 2013-14.3%
Q2 2013+10.2%
Q1 2013+13.6%
Q4 2012-1.1%
Q3 2012-2.7%
Q2 2012+0.7%
Q1 2011-5.9%
Q1 2012+3.7%
Q4 2009-3.9%
Q4 2011-3.9%
Q3 2011+1.0%
Q3 2010+1.0%
Q2 2011-13.2%
Q4 2010-13.2%
Q2 2010-13.2%
Q1 2010-2.4%

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