National Steel (SID) Q2 Earnings Beat Estimates, Revenues Dip Y/Y

About this update from Companhia Siderurgica Nacional

National Steel SID delivered a loss per share of 8 cents, beating the Zacks Consensus Estimate of a loss of 26 cents. Notably, it reported earnings per share of 4 cents in the prior-year quarter.The company reported a net loss of R$222.6 million ($41 million) in the second quarter of 2024.Domestic revenues decreased 4.3% year over year to R$5.5 billion ($1.01 billion). The company’s international business revenues improved 2.7% year over year to R$5.38 billion ($0.99 billion).For the June-end quarter of 2024, net revenues were R$10.88 billion ($1.99 billion), down 1% year over year.National Steel Company Price, Consensus and EPS Surprise National Steel Company price-consensus-eps-surprise-chart | National Steel Company QuoteSegmental PerformanceSteel: The segment’s revenues totaled R$5.59 billion ($1.02 billion), down 5.9% year over year. Steel sales were 1,122.6 thousand tons, up 6.8% from the second quarter of 2023. Iron ore sales were 10,792.2 thousand tons, marking a 4.1% decrease from the prior-year quarter.Mining: The segment generated revenues of R$3.35 billion ($0.61 billion), down 7.8% year over year.Logistics (Port & Railways): The segment’s revenues were R$839 million ($154 million), up 16% year over year.Energy: The segment’s revenues totaled R$103 million ($19 million), which marked a 35% year-over-year fall.Cement: The segment’s revenues improved 8.4% year over year to R$1.2 billion ($0.28 billion).Margin & CostsIn the second quarter of 2024, the company’s cost of sales decreased 9.8% year over year to R$7.89 billion ($1.45 billion). Gross profit improved 33.2% year over year to R$2.99 billion ($0.55 billion). The gross margin came in at 27.6% compared with the year-earlier quarter’s 20.4%.Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) improved 16.9% year over year to R$2.65 billion ($0.73 billion). The EBITDA margin was 24.3% in the reported quarter compared with the prior-year quarter’s 20.6%.Balance Sheet & Cash FlowThe company had cash and cash equivalents of R$15.54 billion ($2.85 billion) at the end of second-quarter 2024, up from R$11.97 billion ($2.19 billion) at the end of the prior-year quarter. The net debt to adjusted EBITDA ratio was 3.6 at the second-quarter 2024 end.Price PerformanceNational Steel’s shares have lost 3.2% in the past year compared with the industry’s 13.8% decline.Zacks RankSID...

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