GGB Earnings Prediction
The chart below shows how GGB performed 10 days before and after its earnings report, based on data from the past quarters. Typically, GGB sees a -1.29% change in stock price 10 days leading up to the earnings, and a +3.08% change 10 days following the report. On the earnings day itself, the stock moves by +0.68%. This data can give you a slight idea of what to expect for the next quarter's release.
GGB Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
3.13B
-10.34%
-1.66%
Gross Margin
14.83%
-9.41%
12.69%
Operating Margin
11.06%
-14.33%
14.14%
Net Margin
7.80%
-16.40%
49.43%
EPS
0.12
-20.00%
50.00%
No Data Available
GGB Earnings Analysis
Gerdau S.A. Corporation (GGB.N) Earnings Conference Call
Positive
Safety Milestone Achieved: 1. Record Safety Performance: Gerdau achieved an injury and accident frequency rate of 1.58, marking the best track record in the last 123 years.
Net Income Surge: 2. Significant Net Income Growth: The company reported a net income of BRL1.432 billion, reflecting a more than 50% increase compared to the previous quarter.
Free Cash Flow Performance: 3. Strong Free Cash Flow Generation: Gerdau generated free cash flow of BRL3 billion, with BRL1.2 billion attributed to higher EBITDA and a significant release of working capital.
Strong Financial Health: 4. Low Leverage Ratio: The company ended the quarter with a leverage ratio of 0.32 times net debt over EBITDA, the lowest level in the last 12 months, indicating strong financial health.
Shareholder Return Strategy: 5. Robust Shareholder Returns: Gerdau executed around 57% of its buyback program, investing over BRL700 million, and maintained a dividend payout of 55% of net income, significantly above the mandatory minimum.
Negative
Steel Import Surge: 1. High Import Levels: The monthly average of steel imports in the first nine months of 2024 was almost 80% higher than the historical average, negatively impacting domestic shipments.
Declining EBITDA Margin Outlook: 2. Lower EBITDA Margin Outlook: The North American business is expected to face lower revenues and margins due to a reduction in merchant prices and a projected decline in shipments of 5% to 10% in Q4.
Trade Defense Ineffectiveness: 3. Ineffective Trade Defense Measures: The current trade defense measures against steel imports have not effectively reduced the excessive volume of imports, particularly from China, which continues to threaten local market stability.
Import Competition Impact: 4. Increased Competition from Imports: The entry of Egyptian rebars and other imports is expected to continue, potentially impacting domestic prices and profitability in Brazil's steel market.
Seasonal Demand Impact: 5. Seasonal Demand Decline: The fourth quarter typically sees a reduction in demand due to seasonal factors, which is expected to further pressure margins and operating leverage.
GGB FAQs
How does GGB typically perform around its earnings report dates?
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GGB Earning Call Sentiment
Gerdau S.A. (GGB) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
GGB.N
1.4%Positive
The earnings call presents a positive sentiment with strong financial performance, including a significant increase in net income and free cash flow. The share buyback and dividend payout are favorable for shareholders. Despite concerns over imports and economic slowdown, the optimistic outlook for steel demand and cost reduction initiatives indicate a promising future. The Q&A session highlights management's confidence in navigating challenges, although some responses lack clarity. Overall, the combination of strong financials, shareholder returns, and strategic initiatives suggests a positive stock price movement in the next two weeks.
