NASDAQ$ZEUS

Olympic Steel Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Olympic Steel delivered its strongest performance of the year due to operational discipline and improved market conditions, resulting in stronger profitability and debt reduction.

Olympic Steel reported net income of $1.8 million, or $0.16 per diluted share, for the fourth quarter of 2020, compared to a net loss of $0.9 million, or $0.08 per diluted share, for the fourth quarter of 2019. Sales for the fourth quarter of 2020 totaled $332 million, compared with $320 million in the fourth quarter of 2019.

  • Net income for the fourth quarter totaled $1.8 million, or $0.16 per diluted share.
  • Adjusted EBITDA for the fourth quarter of 2020 was $9.9 million.
  • Sales for the fourth quarter of 2020 totaled $332 million.
  • The company successfully acquired Action Stainless & Alloys, Inc. in December 2020.

Headline financials

Total Revenue

$332M

Previous: $320M+3.7%
EPS (adj)

$0.14

Previous: -$0.23+160.9%
Debt to equity ratio

0.53

Previous: 0.63-15.9%
Capital Expenditures

$1.84M

Previous: $2.69M-31.7%
Free Cash Flow

$31.2M

Previous: $27.5M+13.3%
Net Income

$1.79M

Previous: -$890K+300.7%
Operating Income

$5.37M

Previous: $1.02M+429.1%
Gross Profit

$71.2M

Previous: $68.6M+3.7%
Cash & Equivalents

$5.53M

Previous: $5.74M-3.6%
Total Assets

$641M

Previous: $650M-1.4%
Stock-Based Comp

$293K

Previous: $290K+1.0%

Revenue & EPS history

Olympic Steel · Revenue · Quarterly

$332M

Q4 2020+3.7%vs Q4 2019
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Olympic Steel · $332M total across 3 segments · Q4 2020

  • Carbon Flat Products
    $179M+0.9%
  • Specialty Metals Flat Products
    $89.3M+9.0%
  • Tubular and Pipe Products
    $63.7M+4.7%

Forward guidance

Olympic Steel expects significantly higher profitability in the first quarter of 2021, driven by favorable market conditions and high metal prices.

Tailwinds

  • Market conditions are favorable.
  • Metal prices have reached all-time highs.
  • The company will stay vigilant in its operational discipline.
  • The company will capitalize on efficiencies.
  • The company will operate with flexibility in the face of the ongoing pandemic, the recovering economy and changing industry dynamics.

Headwinds

  • Ongoing pandemic
  • Recovering economy
  • Changing industry dynamics
  • Risks associated with the novel coronavirus, or COVID-19, pandemic, including, but not limited to supply chain disruptions and customer closures
  • Falling metals prices and inventory devaluation

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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