NYSE$RS

Reliance Steel And Aluminum Co · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reliance Steel achieved record quarterly and annual cash flow from operations.

Reliance Steel & Aluminum Co. reported record financial performance in 2022, driven by solid demand and higher metals pricing. The company achieved record net sales, non-GAAP pretax income, and diluted earnings per share. Strong cash generation enabled continued execution of a disciplined capital allocation strategy.

  • Achieved record financial performance in 2022 with record net sales of $17.03 billion.
  • Generated record annual cash flow from operations of $2.12 billion.
  • Returned $847.4 million to stockholders through share repurchases and quarterly cash dividends.
  • Increased quarterly dividend by 14.3% to $1.00 per share.

Headline financials

Total Revenue

$3.61B

Previous: $3.99B-9.5%
EPS (adj)

$5.87

Previous: $6.83-14.1%
Capital Expenditures

$92.1M

Previous: $57.7M+59.6%
Free Cash Flow

$809M

Previous: $336M+140.6%
Net Income

$2.43B

Previous: $421M+476.8%
Operating Income

$455M

Previous: $563M-19.2%
Gross Profit

$1.13B

Previous: $1.24B-9.1%
Cash & Equivalents

$1.17B

Previous: $301M+289.4%
Total Assets

$1.66B

Previous: $9.54B-82.6%
Stock-Based Comp

$16.9M

Previous: $15.7M+7.6%

Revenue & EPS history

Reliance Steel · Revenue · Quarterly

$3.61B

Q4 2022-9.5%vs Q4 2021
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

Reliance expects healthy demand trends to continue into the first quarter of 2023, with tons sold up 11% to 13% compared to the fourth quarter of 2022. Non-GAAP earnings per diluted share are estimated to be in the range of $5.40 to $5.60 for the first quarter of 2023.

Tailwinds

  • Healthy demand trends are expected to continue into the first quarter of 2023.
  • Tons sold are expected to be up 11% to 13% in the first quarter of 2023 compared to the fourth quarter of 2022.
  • Tons sold are expected to be up 1% to 3% compared to the first quarter of 2022.
  • Semiconductor market remains strong, and the Company’s long-term outlook is positive.
  • Demand in commercial aerospace continued to improve during the fourth quarter with significantly higher shipments compared to the fourth quarter of 2021.

Headwinds

  • Prevailing macroeconomic uncertainty.
  • Ongoing supply chain disruptions.
  • Geopolitical matters.
  • Average selling price per ton sold for the first quarter of 2023 is expected to be down 3% to 5% compared to the fourth quarter of 2022.
  • Stabilizing pricing trends for many of its products compared to December levels, which represented the lowest pricing point in the fourth quarter of 2022.

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 2022

Historical avgQ4 2022

+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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