NYSE$RS

Reliance Steel And Aluminum Co · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported record financial performance driven by resilient business model and favorable market conditions.

Reliance Steel & Aluminum Co. reported record second-quarter financial results, including record net sales of $3.42 billion, gross profit of $1.08 billion, and EPS of $5.08. The company's performance was driven by strong demand in the majority of its end markets, favorable metal pricing, and effective execution by its managers.

  • Record quarterly net sales of $3.42 billion.
  • Record quarterly gross profit of $1.08 billion driven by strong gross profit margin of 31.7%.
  • Record quarterly pretax income of $444.1 million and record pretax income margin of 13.0%.
  • Record quarterly EPS of $5.08.

Headline financials

Total Revenue

$3.42B

Previous: $2.02B+69.3%
EPS (adj)

$5.06

Previous: $1.36+272.1%
Capital Expenditures

-$124M

Previous: -$96.5M-28.3%
Free Cash Flow

$206M

Previous: -$15.8M+1406.3%
Net Income

$330M

Previous: $80.7M+309.2%
Operating Income

$460M

Previous: $119M+288.2%
Gross Profit

-$2.34B

Previous: -$1.4B-66.4%
Cash & Equivalents

$728M

Previous: $223M+226.7%
Total Assets

$8.93B

Previous: $7.72B+15.6%
Stock-Based Comp

$23.2M

Previous: $9.1M+154.9%

Revenue & EPS history

Reliance Steel · Revenue · Quarterly

$3.42B

Q2 2021+69.3%vs Q2 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

Reliance anticipates non-GAAP earnings per diluted share in the range of $5.55 to $5.75 for the third quarter of 2021.

Tailwinds

  • Strong underlying demand in the majority of the end markets.
  • Metal prices at the beginning of the third quarter of 2021 are higher than the average for the second quarter of 2021.
  • Average selling price per ton sold for the third quarter of 2021 will be up 7% to 9%.
  • Company estimates its tons sold will be down 1% to up 1% in the third quarter of 2021 compared to the second quarter of 2021.
  • Reliance remains optimistic about business conditions in the current environment.

Headwinds

  • Factors impacting shipment levels in the second quarter of 2021 such as metal supply constraints and supply chain disruptions will continue to persist in the third quarter of 2021.
  • Demand for the toll processing services Reliance provides to the automotive market softened slightly from first quarter levels.
  • Demand in commercial aerospace softened in the second quarter compared to first quarter shipment levels due to increased COVID-19 related shutdowns in Europe.
  • Demand in the military, defense and space portions of Reliance’s aerospace business was also down from the first quarter due to COVID-19 related shutdowns in Europe.
  • The extent to which the continuing COVID-19 pandemic may negatively impact the Company’s operations will depend on future developments which are highly uncertain and cannot be predicted.

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 Q2 2021

Historical avgQ2 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro