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Dec 31, 2023
Reliance Steel Q4 2023 Earnings Report
Reported strong operational and financial performance with strategic organic volume growth and effective expense management.
Key Takeaways
Reliance, Inc. reported strong financial results for Q4 2023, driven by strength in non-residential construction, aerospace, and general manufacturing end markets. The company's tons sold increased 4.9% year-over-year. They also completed the acquisition of Cooksey Iron & Metal Company and announced the pending acquisition of American Alloy Steel, Inc. Furthermore, the company rebranded to Reliance, Inc.
Delivered strong operational and financial performance in a challenging environment.
Tons sold in the fourth quarter of 2023 increased 4.9% year-over-year.
Completed acquisition of Cooksey Iron & Metal Company on February 1, 2024.
Announced pending acquisition of American Alloy Steel, Inc. on February 14, 2024.
Forward Guidance
Reliance expects healthy demand trends to continue into the first quarter of 2024. The Company estimates its tons sold will be up 9% to 11% compared to the fourth quarter of 2023, consistent with seasonal trends. Reliance expects its average selling price per ton sold for the first quarter of 2024 to be up 1.0% to 3.0% compared to the fourth quarter of 2023. Based on these expectations, the Company anticipates non-GAAP earnings per diluted share in the range of $5.30 to $5.50 for the first quarter of 2024.
Positive Outlook
- Tons sold expected to be up 9% to 11% compared to the fourth quarter of 2023.
- Average selling price per ton sold expected to be up 1.0% to 3.0% compared to the fourth quarter of 2023.
- Anticipates non-GAAP earnings per diluted share in the range of $5.30 to $5.50 for the first quarter of 2024.
- Healthy demand trends expected to continue into the first quarter of 2024.
- Stabilizing pricing trends for many of its products.
Challenges Ahead
- Continuing macroeconomic uncertainty.
- Geopolitical matters.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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