Schnitzer Steel Industries: No Triggers For The Short Term
By Robert Broens: Shares of Schnitzer Steel (SCHN) ended the trading week on a strong note after reporting its second quarter results. Shares ended the day 3.7% higher.
Second Quarter Results
Net income for the second quarter of fiscal 2012 fell from $31 million last year to $9.6 million this year. Earnings per share of $0.35 beat analyst expectations of $0.33 per share after the company lowered its outlook about a month ago. Revenues increased 23% to $887 million. Shares reacted positively to the earnings beat, despite the fact that profits fell 70% on the year. The decision of the Board of Directors to raise the quarterly dividend to $0.1875 has boosted confidence towards the future as well.
Schnitzer held $50 million in cash according to its latest quarterly filing and about $400 million in debt. After Thursday's rise the market value has approached $1.1 billion which represents a 0.3 times revenueComplete Story »