ZEUS Earnings Prediction
The chart below shows how ZEUS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ZEUS sees a +2.00% change in stock price 10 days leading up to the earnings, and a -0.07% change 10 days following the report. On the earnings day itself, the stock moves by -0.93%. This data can give you a slight idea of what to expect for the next quarter's release.
ZEUS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
418.78M
-14.43%
-10.90%
Gross Margin
17.81%
8.53%
27.03%
Operating Margin
4.18%
10.29%
237.10%
Net Margin
0.93%
-38.41%
60.34%
EPS
0.33
-48.44%
43.48%
No Data Available
ZEUS Earnings Analysis
Olympic Steel Inc Corporation (ZEUS.O) Earnings Conference Call
Positive
Metals Industry Resilience: Successfully navigated a difficult year for the metals industry, maintaining shipping volumes within 1% of 2023 levels, outperforming industry shipment levels.
Strong Financial Performance: Total sales for the year were $1.9 billion, with net income of $23.0 million and adjusted EBITDA of $72.5 million, demonstrating strong financial performance despite market challenges.
Consistent Positive EBITDA: Achieved positive EBITDA in all segments for every quarter of 2024, showcasing operational resilience and effective management strategies.
Strategic Acquisition Expansion: Acquired Metalworks, a leading manufacturer, which is expected to enhance Olympic Steel's product offerings and market position, marking the eighth acquisition in seven years.
Quarterly Dividend Increase: Increased quarterly dividend by 7%, from $0.15 to $0.16 per share, reflecting commitment to returning capital to shareholders and rewarding investors.
Capital Expenditure Increase: Invested $29.5 million in capital expenditures in 2024, with plans to increase to $35 million in 2025, focusing on automation and capacity expansion to improve productivity and safety.
EBITDA Positive Results: All three segments achieved EBITDA positive results in the fourth quarter, with a sequential improvement in adjusted EBITDA over the third quarter of 2024.
Negative
Net Income Decline: Net income decreased to $3.9 million in Q4 2024 from $7.4 million in Q4 2023, indicating a decline in profitability year-over-year.
Q4 Adjusted EBITDA Decline: Adjusted EBITDA for Q4 2024 was $14.5 million, down from $16.7 million in the same period last year, reflecting reduced earnings capacity.
Hot Rolled Carbon Price Decline: The company faced a significant decline in hot rolled carbon pricing, which dropped over 40% in the first seven months of 2024, impacting revenue.
Challenging Market Conditions: Despite maintaining shipping volumes, the overall demand from contractual OEM customers, particularly in the heavy equipment sector, was lower, indicating a challenging market environment.
Debt Increase Concerns: The increase in total debt to approximately $272 million, up $82 million from the previous quarter, raises concerns about financial leverage and future obligations.
Q4 Operating Expenses Analysis: Operating expenses for Q4 2024 were $96.5 million, which, although lower than the previous year's $100.4 million, included additional costs from the Metalworks acquisition, suggesting potential inefficiencies in integration.
Tax Rate Increase Impact: The effective income tax rate increased to 18.9% from 23.3% year-over-year, with expectations for a higher tax rate in 2025, which could further impact net income.
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ZEUS Earning Call Sentiment
Olympic Steel, Inc. (NASDAQ:ZEUS) Q4 2024 Earnings Call Transcript
ZEUS.O
1.1%Positive
The earnings call reveals mixed financial results with concerns over increased debt due to the Metalworks acquisition and a challenging market environment, indicated by the PMI below 50. Despite a dividend increase and optimistic guidance, the Q&A highlighted uncertainties, particularly regarding synergies from the acquisition and tariff impacts. Operational costs rose, affecting profitability. These factors suggest a negative sentiment, likely leading to a stock price decline in the next two weeks.
