Schnitzer Steel Shares Plunge as Q1 Earnings Miss View (SCHN)


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Steel producer Schnitzer Steel Industries, Inc. ( SCHN ) late Thursday posted worse-than-expected first quarter earnings, sending its shares lower in aftermarket trading.

The Portland, OR-based company reported first quarter net income of $18.9 million, or 64 cents per share, compared with $7.8 million, or 23 cents per share, in the year-ago period.

Sales surged 71% from last year to $675 million.

On average, Wall Street analysts expected a higher profit of 71 cents per share, on slightly greater revenue of $676.5 million.

Looking ahead, the company said it expects a decline in second quarter ferrous sales volumes, citing seasonal declines in supply flows and effects of winter weather.

Schnitzer Steel shares plunged $4.87, or -7.1%, in premarket trading Friday.

The Bottom Line
Shares of Schnitzer Steel ( SCHN ) have a .10% dividend yield, based on last night's closing stock price of $68.87. The stock has technical support in the $59-$60 price area. If the shares can firm up, we see overhead resistance around the $73 price levels.

Schnitzer Steel Industries, Inc. ( SCHN ) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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