NYSE$RS

Reliance Steel And Aluminum Co · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reliance Steel reported record quarterly EPS and completed four acquisitions.

Reliance Steel & Aluminum Co. reported record financial performance in Q4 2021, driven by its resilient business model and strong execution. The company's diverse product mix, end markets, and relationships with domestic mill partners contributed to the record results.

  • Reliance finished the year strong with record financial performance across nearly every metric.
  • Tons sold decreased 5.7% compared to the third quarter of 2021.
  • Completed four acquisitions in the fourth quarter with an aggregate purchase consideration of $439 million.
  • Underlying demand is stronger than its fourth quarter shipment levels reflect which bodes well for 2022.

Headline financials

Total Revenue

$3.99B

Previous: $2.13B+86.9%
EPS (adj)

$6.83

Previous: $2.01+239.8%
Capital Expenditures

$57.7M

Previous: $37.3M+54.7%
Free Cash Flow

$336M

Previous: $193M+74.2%
Net Income

$421M

Previous: $130M+225.1%
Operating Income

$563M

Previous: $183M+206.8%
Gross Profit

$1.24B

Previous: $704M+76.7%
Cash & Equivalents

$301M

Previous: $684M-56.0%
Total Assets

$9.54B

Previous: $8.11B+17.6%
Stock-Based Comp

$15.7M

Previous: $12.3M+27.6%

Revenue & EPS history

Reliance Steel · Revenue · Quarterly

$3.99B

Q4 2021+86.9%vs Q4 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

Reliance remains optimistic about business conditions in the first quarter of 2022 with solid underlying demand across most key end markets. The Company estimates non-GAAP earnings per diluted share in the range of $7.05 to $7.15 for the first quarter of 2022.

Tailwinds

  • Solid underlying demand across most key end markets.
  • Tons sold will be up 5% to 7% in the first quarter of 2022 compared to the fourth quarter of 2021 due to seasonal shipping volume increases.
  • Continued strength in pricing for the majority of its products and the markets into which it sells.
  • Demand in non-residential construction activity in the key areas in which the Company participates will continue to strengthen through 2022.
  • Demand for its toll processing services will remain solid throughout 2022.

Headwinds

  • Softer demand in January and early February attributable to continued supply chain and labor disruptions at Reliance as well as its customers and suppliers resulting from the Omicron surge.
  • Significant pricing declines for carbon hot-rolled coil and sheet products.
  • Tons sold estimate is lower than the typical first quarter expectation as a result of softer demand in January and early February attributable to continued supply chain and labor disruptions at Reliance as well as its customers and suppliers resulting from the Omicron surge.
  • The continuing pandemic and changes in worldwide and U.S. economic conditions that could materially impact the Company, its customers and suppliers and demand for the Company’s products and services.
  • Deteriorations in economic conditions, as a result of COVID-19 or otherwise, could lead to a further or prolonged decline in demand for the Company’s products and services and negatively impact its business.

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 Q4 2021

Historical avgQ4 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