NYSE$RS

Reliance Steel And Aluminum Co · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported record financial performance driven by a favorable market and outstanding execution.

Reliance Steel & Aluminum Co. reported record financial results for the first quarter of 2021, driven by a resilient business model and strong execution. The company achieved record gross profit, pretax income, and earnings per share, benefiting from strength in metals pricing and improving demand in many markets.

  • Achieved record quarterly gross profit of $953.7 million with a record gross profit margin of 33.6%.
  • Reported record quarterly pretax income of $359.0 million and a record pretax income margin of 12.6%.
  • Posted record earnings per share (EPS) of $4.12.
  • Generated cash flow from operations of $161.8 million despite a $182.8 million working capital investment.

Headline financials

Total Revenue

$2.84B

Previous: $2.57B+10.3%
EPS (adj)

$4.10

Previous: $2.45+67.3%
Capital Expenditures

-$43.7M

Previous: -$55.5M+21.3%
Free Cash Flow

$225M

Previous: $7.4M+2933.8%
Net Income

$268M

Previous: $62.9M+326.4%
Operating Income

$378M

Previous: $103M+266.2%
Gross Profit

-$1.88B

Previous: -$1.79B-5.2%
Cash & Equivalents

$760M

Previous: $172M+341.8%
Total Assets

$8.55B

Previous: $8.09B+5.7%
Stock-Based Comp

$14.7M

Previous: $8.9M+65.2%

Revenue & EPS history

Reliance Steel · Revenue · Quarterly

$2.84B

Q1 2021+10.3%vs Q1 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

Reliance management anticipates continued strength in its gross profit margin in the second quarter of 2021. Based on these expectations, Reliance management currently anticipates non-GAAP earnings per diluted share in the range of $4.20 to $4.40 for the second quarter of 2021.

Tailwinds

  • Company estimates its tons sold will be flat to up 2.0% in the second quarter of 2021 compared to the first quarter of 2021.
  • The Company expects metal pricing will remain near current levels, with the potential for further upside in certain products.
  • Management estimates its average selling price per ton sold for the second quarter of 2021 will be up 5% to 7%.
  • Company anticipates continued strength in its gross profit margin in the second quarter of 2021.
  • Strong demand and pricing fundamentals

Headwinds

  • Macroeconomic uncertainty stemming from the COVID-19 pandemic continues.
  • Factors impacting shipment levels in the first quarter of 2021 such as metal supply constraints and supply chain disruptions for many of Reliance’s customers will continue to persist in the second quarter of 2021.
  • Metal supply constraints
  • Supply chain disruptions
  • COVID-19 pandemic

Historical earnings impact

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

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+1.3%

Avg return

Earnings day

+1.9%

Avg return

5 days after

+1.6%

Avg return

30 days after

64%

44 / 69 earnings

Positive

+17.0%

Q3 2019

Best reaction

-13.2%

Q2 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.9%+3.3%+4.5%
Q4 2025-2.7%-5.7%-13.6%
Q3 2025-0.3%+2.1%+0.3%
Q2 2025-1.5%-1.4%+0.2%
Q1 2025+0.7%+1.7%+3.1%
Q4 2024+3.1%+0.8%-5.5%
Q3 2024+0.3%+4.1%+13.0%
Q2 2024+3.5%+2.8%-4.0%
Q1 2024-7.3%-9.2%-3.1%
Q4 2023+10.8%+7.8%+8.8%
Q3 2023+0.5%+2.9%+8.4%
Q2 2023-0.3%+0.9%-5.1%
Q1 2023+3.1%+3.1%-0.3%
Q4 2022+6.2%+3.6%+3.0%
Q3 2022+2.8%+5.6%+9.1%
Q2 2022+1.9%-0.1%+4.2%
Q1 2022+4.8%+8.1%+8.3%
Q4 2021+4.0%+3.8%+13.9%
Q3 2021+1.5%+4.5%+9.9%
Q2 2021+0.3%+1.6%-0.6%
Q1 2021+1.5%+3.2%+7.0%
Q4 2020+4.7%+8.1%+18.6%
Q3 2020-0.7%-2.8%+5.5%
Q2 2020+6.2%+3.9%+7.2%
Q1 2020+3.9%+6.7%+9.1%
Q4 2019-5.3%-8.3%-36.5%
Q3 2019+17.0%+20.7%+17.3%
Q2 2019+10.6%+8.2%+2.7%
Q1 2019+3.3%+3.5%-4.3%
Q4 2018+3.1%+4.2%+0.7%
Q3 2018-0.3%+0.6%+3.9%
Q2 2018-1.3%-1.9%-4.4%
Q1 2018+0.3%-1.6%+4.6%
Q4 2017+6.8%+4.7%+2.4%
Q3 2017+2.8%+1.0%-0.4%
Q2 2017-2.9%-2.7%-4.1%
Q1 2017-1.0%-2.6%-8.5%
Q4 2016+1.0%+2.2%-3.9%
Q3 2016-5.8%-5.5%+5.7%
Q2 2016-7.2%-6.1%-11.3%
Q1 2016-1.5%
Q4 2015-1.7%
Q3 2015+8.9%
Q2 2015+4.5%
Q1 2015+9.9%
Q4 2014+6.5%
Q3 2014+2.1%
Q2 2014-5.3%
Q1 2014-2.8%
Q4 2013-3.1%
Q3 2013-2.5%
Q2 2013+1.5%
Q1 2013-4.5%
Q4 2012+0.1%
Q3 2012+5.4%
Q2 2012+10.4%
Q1 2012-0.6%
Q4 2011-0.7%
Q3 2011+1.1%
Q2 2011-13.2%
Q1 2010+3.0%
Q1 2011-0.1%
Q4 2010+1.4%
Q4 2008+1.4%
Q3 2010+1.2%
Q3 2009+1.2%
Q2 2010+1.0%
Q4 2009+1.0%
Q2 2009+1.0%

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