NYSE$RS

Reliance Steel And Aluminum Co · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported strong operational and financial performance with strategic organic volume growth and effective expense management.

Reliance, Inc. reported strong financial results for Q4 2023, driven by strength in non-residential construction, aerospace, and general manufacturing end markets. The company's tons sold increased 4.9% year-over-year. They also completed the acquisition of Cooksey Iron & Metal Company and announced the pending acquisition of American Alloy Steel, Inc. Furthermore, the company rebranded to Reliance, Inc.

  • Delivered strong operational and financial performance in a challenging environment.
  • Tons sold in the fourth quarter of 2023 increased 4.9% year-over-year.
  • Completed acquisition of Cooksey Iron & Metal Company on February 1, 2024.
  • Announced pending acquisition of American Alloy Steel, Inc. on February 14, 2024.

Headline financials

Total Revenue

$3.34B

Previous: $3.61B-7.6%
EPS (adj)

$4.73

Previous: $5.87-19.4%
Capital Expenditures

-$110M

Previous: $92.1M-219.7%
Net Income

$273M

Previous: $2.43B-88.8%
Operating Income

$325M

Previous: $455M-28.5%
Gross Profit

$959M

Previous: $1.13B-15.1%
Stock-Based Comp

$16.6M

Previous: $16.9M-1.8%

Revenue & EPS history

Reliance Steel · Revenue · Quarterly

$3.34B

Q4 2023-7.6%vs Q4 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

Reliance expects healthy demand trends to continue into the first quarter of 2024. The Company estimates its tons sold will be up 9% to 11% compared to the fourth quarter of 2023, consistent with seasonal trends. Reliance expects its average selling price per ton sold for the first quarter of 2024 to be up 1.0% to 3.0% compared to the fourth quarter of 2023. Based on these expectations, the Company anticipates non-GAAP earnings per diluted share in the range of $5.30 to $5.50 for the first quarter of 2024.

Tailwinds

  • Tons sold expected to be up 9% to 11% compared to the fourth quarter of 2023.
  • Average selling price per ton sold expected to be up 1.0% to 3.0% compared to the fourth quarter of 2023.
  • Anticipates non-GAAP earnings per diluted share in the range of $5.30 to $5.50 for the first quarter of 2024.
  • Healthy demand trends expected to continue into the first quarter of 2024.
  • Stabilizing pricing trends for many of its products.

Headwinds

  • Continuing macroeconomic uncertainty.
  • Geopolitical matters.
  • Possibility that the expected benefits of acquisitions may not materialize as expected.
  • Impacts of labor constraints and supply chain disruptions.
  • Changes in domestic and worldwide political and economic conditions.

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 2023

Historical avgQ4 2023

+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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