Stock Earnings Review Report: Reliance Steel & Aluminum Co. (NYSE: RS)

On 31 Oct 2019, Reliance Steel & Aluminum Co. (NYSE: RS) spotted trading -3.98% off 52-week high price. On the other end, the stock has been noted 69.11% away from the low price over the last 52-weeks. The stock changed -1.70% to recent value of $116.04. The stock transacted 680077 shares during most recent day however it has an average volume of 517.84K shares. The company has 66.65M of outstanding shares and 64.35M shares were floated in the market.

Reliance Steel & Aluminum Co. (RS) recently stated its financial results for the third quarter ended September 30, 2019 (inMs, except tons which are in thousands and per share amounts).

End Market Commentary
The Company’s shipments were higher than anticipated in the third quarter of 2019 as Reliance continued to benefit from its strategy of serving diverse end markets and providing a wide range of products and processing services, generally in small quantities on a just-in-time basis. While the Company experienced the typical seasonal slowdown during the third quarter resulting from consumer shutdowns and vacation schedules, Reliance’s shipments in the third quarter of 2019 reduced only 2.0% contrast to the second quarter of 2019, outpacing the Company’s expectations of a more typical seasonal decline of 4% to 6%.

While shipment levels across all of Reliance’s major commodity groups were better than anticipated, the overall higher shipment levels were primarily Because of increased demand in the non-residential construction (including infrastructure) market during the third quarter of 2019.

Demand for the products and services Reliance provides to the aerospace and automotive markets remained strong. Reliance maintains its positive outlook for these end markets and continues to invest in growing its capabilities in these areas.

Demand in the energy (oil and gas) market remains at low levels, which the Company expects to continue for the remainder of fiscal 2019.

Balance Sheet & Cash Flow
Reliance ended the third quarter of 2019 with total debt outstanding of $1.65B, a decrease of $367.5M contrast to total debt outstanding of $2.02B at June 30, 2019. At September 30, 2019, Reliance’s net debt-to-total capital ratio was 22.6% contrast to 27.4% at June 30, 2019. The Company had $1.05B accessible for borrowings on its $1.5B revolving credit facility at September 30, 2019. Reliance generated cash flow from operations of $490.9M during the third quarter of 2019 and $954.1M in the first nine months of 2019.

“We remain very happy with our overall financial position resulting from our strong profitability and effective working capital management including a focused reduction in inventory levels,” commented Karla Lewis, Senior Executive Vice President and Chief Financial Officer of Reliance. “We generated important cash flow from operations during the quarter which allowed us to conpresently continue investing in the growth of our business, pay down debt, and return value to our stockholders. In the third quarter of 2019, we invested $58.9M in capital expenditures, reduced our debt balance by $367.5M and paid $36.8M in quarterly cash dividends. We are very well positioned to continue executing all of our capital allocation strategies going forward.”

Stockholder Return Activity
On October 22, 2019, the Board of Directors reported a quarterly cash dividend of $0.55 per share of ordinary stock, payable on December 6, 2019 to stockholders of record as of November 15, 2019. Reliance has paid regular quarterly dividends for 60 consecutive years and has increased the dividend 26 times since its 1994 IPO.

Reliance did not repurchase any shares of its ordinary stock in the third quarter of 2019. In the first nine months of 2019, Reliance repurchased $50.0M of its ordinary stock at an average cost of $84.33 per share. At September 30, 2019, about 6.4M shares remained accessible for repurchase under the Company’s stock repurchase program. Reliance expects to continue efficiently repurchasing shares of its ordinary stock going forward.

Its earnings per share (EPS) expected to touch remained 59.20% for this year while earning per share for the next 5-years is expected to reach at 3.68%. RS has a gross margin of 28.60% and an operating margin of 8.60% while its profit margin remained 5.80% for the last 12 months.   According to the most recent quarter its current ratio was 4.4 that represents company’s ability to meet its current financial obligations. The price moved ahead of 11.78% from the mean of 20 days, 14.56% from mean of 50 days SMA and performed 25.40% from mean of 200 days price. Company’s performance for the week was 2.84%, 19.51% for month and YTD performance remained 63.05%.


Willard Shelton

Willard Shelton – Technology My name is Willard Shelton, I have worked for the stock market industry for 4 years. Technology news grasp my attention the most. In early days, I started my journey with an ordinary author. Moving forward with great hard work and passion I achieve a higher position. As I believe in working hard and putting the soul in my work, I have accomplished so much success and place in, and now I have confidence in this, that I am the spin of this network. I have a vision of touching the sky. I wish to see this industry on a global scale one day. My other duties are that I am a contributor and an editor of the technology segment. My work is to do a critical analysis of companies and pick out the most significant information for investor network.

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