Olympic Steel, Inc. ZEUS will release second-quarter 2021 results after the closing bell on Aug 5.
The company has a trailing four-quarter earnings surprise of 38.7%, on average. Its second-quarter results are likely to have benefited from higher metal prices and solid end-market demand.
Shares of Olympic Steel have rallied 170.2% in the past year compared with the 147.7% rise of the industry.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
Our proven model predicts an earnings beat for Olympic Steel this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat.
Earnings ESP: Earnings ESP for Olympic Steel is +31.84%. The Zacks Consensus Estimate for earnings for the second quarter is currently pegged at $2.01. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Olympic Steel currently carries a Zacks Rank #1.
What do the Estimates Say?
The Zacks Consensus Estimate for second-quarter sales for Olympic Steel is currently pegged at $516.4 million, which suggests a rise of around 108% year over year.
A Few Factors to Watch
Olympic Steel, in its first-quarter call, noted that it expects to deliver strong profitability in the second quarter, factoring in strong demand in its segments and higher metal prices.
The company’s second-quarter results are expected to have been supported by its actions to lower operating expenses and strength in its pipe and tube and specialty metals businesses. Favorable market conditions, robust end-user demand and higher metal prices are expected to have driven its top line and margins in the second quarter. Tight supply and strong demand are likely to have provided a boost to metal prices in the June quarter.
Olympic Steel is likely to have witnessed strong demand in automotive, industrial equipment, agriculture and construction end-markets in the second quarter. Higher demand is expected to have boosted the company’s volumes in the quarter.
Olympic Steel, Inc. Price and EPS Surprise
Olympic Steel, Inc. price-eps-surprise | Olympic Steel, Inc. Quote
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows they too have the right combination of elements to post an earnings beat this quarter:
Sociedad Quimica y Minera de Chile S.A. SQM scheduled to release earnings on Aug 18, has an Earnings ESP of +21.88% and carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
GrowGeneration Corp. GRWG, scheduled to release earnings on Aug 12, has an Earnings ESP of +3.45% and carries a Zacks Rank #2.
Hecla Mining Company HL, scheduled to release earnings on Aug 5, has an Earnings ESP of +3.13% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report