Schnitzer Steel (SCHN) to Post Q2 Earnings: What’s in the Cards?

Schnitzer Steel Industries, Inc.


SCHN

is slated to release second-quarter fiscal 2021 results before the bell on Apr 7. Benefits of higher ferrous and non-ferrous sales volumes are likely to reflect on its results. The company is also likely to have gained from higher prices for recycled metals and its productivity improvement actions.

The company beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters. In this timeframe, it delivered an earnings surprise of 72.7%, on average. It delivered an earnings surprise of 46.2% in the last reported quarter.

The company’s shares have surged 222.6% over a year compared with the

industry

’s 158.9% rise.

Let’s see how things are shaping up for this announcement.

What do the Estimates Say?

The Zacks Consensus Estimate for the company’s fiscal second quarter sales is currently pegged at $597.1 million, which suggests a rise of 35.9% from the year-ago quarter’s tally.

Some Factors at Play

Schnitzer Steel’s second-quarter results are expected to reflect the benefits of higher ferrous and non-ferrous sales volumes on the back of higher demand. It is benefiting from favorable ferrous and non-ferrous market conditions. Schnitzer Steel gained from strong market demand for recycled metals and finished steel products in the fiscal first quarter on the back of economic recovery which is expected to have continued in the quarter to be reported.

The company is also likely to have benefited from higher ferrous and non-ferrous average selling prices and its productivity improvements and cost cost-reduction actions in the to-be-reported quarter. Productivity and commercial initiatives enabled by full transition to its new One Schnitzer operating model are likely to have supported its margins.

Zacks Model

Our proven model does not conclusively predict an earnings beat for Schnitzer Steel this season. The combination of a positive

Earnings ESP

and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.

Earnings ESP:

Earnings ESP for Schnitzer Steel is 0.00%. The Zacks Consensus Estimate for earnings for the second quarter is currently pegged at 99 cents. You can uncover the best stocks to buy or sell before they’re reported with our

Earnings ESP Filter

.

Zacks Rank:

Schnitzer Steel currently carries a Zacks Rank #2.

Stocks That Warrant a Look

Here are some companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat in their upcoming releases:

KushCo Holdings, Inc.


KSHB

has an Earnings ESP of +23.08% and carries a Zacks Rank #2. You can see


the complete list of today’s Zacks #1 Rank stocks here


.

Celanese Corporation


CE

has an Earnings ESP of +2.53% and carries a Zacks Rank #2.

Freeport-McMoRan Inc.


FCX

has an Earnings ESP of +27.62% and carries a Zacks Rank #3.

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