Metallus Shares Surge Despite Q1 Earnings, Revenue Miss By Investing.com

CANTON, Ohio – Metallus Inc. (NYSE: MTUS), a prominent player in specialty metals and supply chain solutions, reported first-quarter earnings that fell short of Wall Street expectations.

The company posted adjusted earnings per share (EPS) of $0.36, which was $0.13 below the analyst consensus of $0.49. Revenue for the quarter was $323.5 million, also missing the consensus estimate of $339.6 million. Despite the earnings and revenue miss, Metallus shares jumped 6.6% following the announcement.

In comparison to the same quarter last year, Metallus’s net sales remained relatively flat, with a slight decrease from $323.5 million. The company’s net income saw a significant increase, rising from $14.4 million, or $0.30 per diluted share, to $24.0 million, or $0.52 per diluted share.

On an adjusted basis, net income for the first quarter of 2024 was $26.1 million, or $0.56 per diluted share, compared to $20.8 million, or $0.44 per diluted share, in the first quarter of 2023.

President and CEO Mike Williams commented on the company’s performance, noting the effective management of profitability and cash generation despite softer demand from industrial distribution and energy customers.

Williams also highlighted the company’s involvement in over 20 defense-related programs and efforts to pursue new growth opportunities in the aerospace & defense market.

For the second quarter of 2024, Metallus expects adjusted EBITDA to be lower than the first quarter. The company anticipates second-quarter shipments to be similar to the first quarter, with a solid base price per ton but a less favorable product mix. Surcharge revenue per ton is projected to decline due to a lower average No. 1 busheling scrap index.

Metallus’s share repurchase program was also in the spotlight, with an additional $100 million authorization announced by the Board of Directors on May 6, 2024. This move reflects the Board’s confidence in the company’s financial strength and its ability to maintain through-cycle profitability.

The company’s stock surge reflects investor optimism, likely tied to the strong balance sheet and proactive share repurchases, signaling confidence in Metallus’s long-term strategy and financial health.

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