RS Earnings Prediction
The chart below shows how RS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, RS sees a -2.03% change in stock price 10 days leading up to the earnings, and a +1.41% change 10 days following the report. On the earnings day itself, the stock moves by +2.33%. This data can give you a slight idea of what to expect for the next quarter's release.
RS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
3.42B
-5.59%
-6.12%
Gross Margin
27.44%
-2.17%
-1.93%
Operating Margin
8.14%
-24.28%
-15.65%
Net Margin
5.84%
-28.52%
-20.65%
EPS
3.61
-27.66%
-22.70%
No Data Available
RS Earnings Analysis
Reliance, Inc. Corporation (RS.N) Earnings Conference Call
Positive
Cash Flow Performance: 1. Strong Cash Flow Generation: Reliance generated $463.9 million in cash flow from operations in Q3 2024, demonstrating strong profitability and effective working capital management.
Sales Volume Increase: 2. Increased Tons Sold: The company reported a 7.1% increase in tons sold compared to the previous year, significantly outperforming the service center industry decrease of 1.2%.
Shareholder Value Enhancement: 3. Share Repurchase Program: Reliance repurchased $432 million of its common stock during the quarter, reducing total shares outstanding by nearly 3%, reflecting a commitment to returning value to shareholders.
Dividend Commitment: 4. Consistent Dividend Payments: The company paid $60.6 million in dividends during the quarter, underscoring its ongoing commitment to stockholder returns.
Strategic Acquisitions Impact: 5. Successful Acquisitions: Reliance completed four acquisitions in 2024, including a $23 million acquisition in Q3, enhancing its product diversification and value-added processing capabilities.
Negative
Earnings Decline Analysis: 1. Declining Earnings: Non-GAAP diluted earnings per share decreased by 21.7% from the second quarter of 2024, coming in at $3.64, which was at the low end of guidance.
Gross Profit Margin Decline: 2. Gross Profit Margin Contraction: Gross profit margin fell from 29.8% in the second quarter to 29.4% in the third quarter due to continued pricing headwinds.
Average Selling Price Decline: 3. Decreased Average Selling Price: The average selling price per ton sold dropped by 4.3% compared to the second quarter of 2024, exceeding expectations of a decline of 2% to 4%.
Sales Decline Forecast: 4. Fourth Quarter Sales Decline Forecast: The company anticipates a 6% to 8% decrease in tons sold in the fourth quarter compared to the third quarter, reflecting heightened macroeconomic uncertainty.
Rising SG&A Expenses: 5. Increased SG&A Expenses: Same-store non-GAAP SG&A expenses rose by approximately $17 million or 3% year-over-year, driven by higher headcount and wage inflation, despite a slight sequential decline.
RS FAQs
How does RS typically perform around its earnings report dates?
Is Reliance, Inc. (RS) Q3 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
RS Earning Call Sentiment
Reliance, Inc. (RS) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
RS.N
-0.53%Positive
The earnings call summary reveals several negative indicators: declining metals pricing, competitive pressures, supply chain challenges, and macroeconomic uncertainties. Despite some positive signs like increased tons sold and shareholder returns, the overall financial performance shows a decrease in earnings per share and gross profit margin. The Q&A section further highlights uncertainties, particularly around LIFO reserve adjustments and future pricing. These factors, combined with weak guidance, suggest a negative sentiment, likely leading to a stock price decrease in the range of -2% to -8% over the next two weeks.
