Zacks Investment Research downgraded
Olympic Steel Inc.
) to a Zacks Rank #5 (Strong Sell) on February 26, 2013.
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).
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
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