Metals recycler Schnitzer Steel Industries, Inc. (
) late Wednesday posted a higher-than-expected third quarter
profit, as sales more than doubled from last year.
The Portland, OR-based company reported fiscal third quarter net
income of $63.8 million, or $1.43 per share, compared with a net
loss of $4.2 million, or 1 cent per share, in the year-ago period.
Revenue rose more than 100%, to $703.5 million.
On average, Wall Street analysts expected a much smaller profit
of 87 cents per share, on lower sales of $671.8 million.
Looking ahead, the company warned that fourth quarter margins
from ferrous metals would be "significantly lower" than third
Schnitzer Steel shares rose 80 cents, or +2%, in premarket
The Bottom Line
We removed shares of SCHN back on July 24, 2008, when the stock was
trading at $79.57. The company has a .18% dividend yield, based on
last night's closing stock price of $39.20. The stock has technical
support in the $33-$37 price area. If the shares can firm up, we
see overhead resistance around the $45 price level. We would remain
on the sidelines for now
Schnitzer Steel Industries, Inc. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.2 out of 5 stars.
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