Zacks Investment Research downgraded
Olympic Steel Inc.
) to a Zacks Rank #5 (Strong Sell) on February 26, 2013.
NIPPON STEEL CP (NSSMY): Get Free Report
SHILOH INDS INC (SHLO): Get Free Report
CIA SIDERUR-ADR (SID): Free Stock Analysis
OLYMPIC STEEL (ZEUS): Free Stock Analysis
To read this article on Zacks.com click here.
Why the Downgrade?
Olympic Steel reported lackluster financial results for the
fourth quarter and year 2012 on February 21, 2013. The company
posted a net loss of 32 cents compared with the Zacks Consensus
Estimate of earnings of 7 cents.
Revenue in the quarter came in at $291.7 million, down 8.8% year
over year as the company suffered largely from lower steel demand
and decline in prices. Olympic Steel's Flat products segment
reported a revenue decline of 10.9% while revenue from Tubular
and pipe products segment increased marginally.
Operating results, excluding a goodwill impairment charge, swung
into a loss and came in at $1.6 million compared with an
operating income of $3.9 million reported in the year-ago
The financial results for the quarter induced downward revisions
in earnings estimates for the company. The Zacks Consensus
Estimate for 2013 went down by 8.4% to $1.53 while that for 2014
decreased by 5.5% to $2.23 per share in the last 30 days. Also,
negative earnings surprise in three out of four trailing
quarters, with an average of -210.8%, raises our concern over the
financial health of Olympic Steel.
Other Stocks to Consider
Other stocks to watch out for in the industry are
Shiloh Industries Inc.
), with a Zacks Rank #1 (Strong Buy) while
Companhia Siderurgica Nacional
Nippon Steel & Sumitomo Metal Corporation
) have a Zacks Rank #2 (Buy).