More from Dividend.com
Referenced Stocks

Schnitzer Steel’s Target, Estimates Cut at Auriga; Shares Plunge (SCHN)

By Dividend.com,  May 18, 2012, 10:50:34 AM EDT

Steel producer Schnitzer Steel Industries, Inc. ( SCHN ) on Friday caught some negative commentary from analysts at Auriga USA.

The firm maintained its "Hold" rating on SCHN but slashed its price target from $44 to $36. That new target suggests a small upside to the stock's Thursday closing price of $32.34.

An Auriga analyst commented, "Schnitzer Steel ( SCHN ) announced its market outlook for the fiscal 3Q12 quarter (May), which we believe translates to a sequential earnings decline. Consequently, we are drastically reducing our fiscal 3Q12 EPS estimate, which is slightly below consensus, from $0.70 to $0.25. We are also reducing our full-year fiscal 2012 and 2013 EPS estimates from $2.25 and $4.40 to $1.30 and $3.75, respectively. The revisions are being driven by ongoing top-line headwinds from the current economic environment, which is being compounded by increases in costs for raw materials."

Schnitzer Steel shares plummeted $3.53, or -11%, in morning trading Friday.

The Bottom Line
Shares of Schnitzer Steel ( SCHN ) have a 2.32% dividend yield, based on last night's closing stock price of $32.34. The stock has technical support in the $25 price area. If the shares can firm up, we see overhead resistance around the $34-$36 price levels.

Schnitzer Steel Industries, Inc. ( SCHN ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 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 The NASDAQ OMX Group, Inc.


This article appears in: Investing, Stocks

Referenced Stocks: SCHN



Latest News Video

Man Who Had His Face Eaten Posts Thank You Video
Man Who Had His Face Eaten Posts Th...
Fewer Bank Layoffs Expected in Asia in 2013
Fewer Bank Layoffs Expected in Asia...
E-Bikes Vroom Forward
E-Bikes Vroom Forward               
Aereo Hits Boston On United States Invasion
Aereo Hits Boston On United States ...


Sign-in
Existing NASDAQ.com member? Log in here.

By signing into to the site using any of the third-party services above, you agree to NASDAQ.com's Terms of Use.

From Our Trusted News Source





Most Active by Volume:

Company Last Sale Change Net / %
BAC $ 13.44 0.07  0.52%
F $ 14.95 0.10  0.66%
CLWR $ 3.40 0.14  4.29%
SIRI $ 3.515 0.02  0.43%
MSFT $ 34.85 0.23  0.66%
CSCO $ 24.01 0.07  0.27%
MRK $ 47.33 2.12  4.69%
PFE $ 28.78 0.08  0.28%