National Steel (NYSE:SID) Releases Quarterly Earnings Results, Misses Expectations By $0.13 EPS

National Steel (NYSE:SID) announced its earnings results on Thursday. The basic materials company reported ($0.08) earnings per share for the quarter, missing the consensus estimate of $0.05 by ($0.13), FiscalAI reports. National Steel had a negative net margin of 4.00% and a negative return on equity of 10.92%. The business had revenue of $2.04 billion for the quarter, compared to analyst estimates of $2.08 billion.

Here are the key takeaways from National Steel’s conference call:

• CSN reported EBITDA growth of about 5.5% year over year despite heavy rainfall and imported-material competition, helped by strong contributions from cement and logistics.
• Leverage improved to 3.36x from 3.47x, supported by debt payments, better operations, and new iron ore prepayment contracts. Management said the company remains focused on further deleveraging.
• Cement delivered record profitability with the highest EBITDA in company history and margins above 30%, and management described the segment as resilient with further upside from pricing and demand.
• Mining posted record own production despite severe rainfall, while Tecar also reached a shipment record, highlighting operational resilience in a difficult quarter.
• CSN secured a US$1.2 billion bridge loan that can be expanded to US$1.4 billion, mainly to pre-fund upcoming amortizations and support liquidity while the company advances asset sales and debt refinancing.

National Steel Stock Performance

National Steel stock traded up $0.08 during mid-day trading on Thursday, reaching $1.36. The company’s stock had a trading volume of 3,502,393 shares, compared to its average volume of 3,196,718. The firm has a market cap of $1.80 billion, a price-to-earnings ratio of -5.65 and a beta of 1.54. The business has a 50 day moving average price of $1.30 and a 200-day moving average price of $1.57. The company has a current ratio of 1.08, a quick ratio of 0.71 and a debt-to-equity ratio of 2.70. National Steel has a twelve month low of $1.11 and a twelve month high of $2.20.

Analysts Set New Price Targets

A number of research firms have recently weighed in on SID. Zacks Research raised shares of National Steel from a “strong sell” rating to a “hold” rating in a research report on Tuesday, April 7th. Weiss Ratings reiterated a “sell (d)” rating on shares of National Steel in a research note on Wednesday, January 21st. One investment analyst has rated the stock with a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock has an average rating of “Sell” and a consensus target price of $1.40.

Hedge Funds Weigh In On National Steel

An institutional investor recently raised its position in National Steel stock. HRT Financial LP grew its position in shares of National Steel Company (NYSE:SID) by 175.3% in the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 564,262 shares of the basic materials company’s stock after acquiring an additional 359,335 shares during the quarter. HRT Financial LP’s holdings in National Steel were worth $902,000 as of its most recent filing with the SEC.

National Steel Company Profile

Companhia Siderúrgica Nacional operates as an integrated steel producer in Brazil and Latin America. It operates through five segments: Steel Industry, Mining, Logistics, Energy, and Cement. The company offers flat steel products, such as hot and cold rolled, galvanized, galvalume, pre-painted, and metal sheets products; coil, sheets, and derivatives; tiles and derivatives, pipes, and profiles; long steel products; steel packaging solutions for the food industry; chemical packaging solution; and carbochemical products.