Steel recyclable and product made Schnitzer Steel (NASDAQ: SCHN) The stock has been hovering between 35 and $ 57 for more than a year, despite improvements in fundamentals. The rise in commodity prices for ferrous and non-ferrous recycled metals is being driven by rising all-time highs for finished steel. Ferrous metals contain magnetic properties of iron, including steel and cast iron, and its alloys such as stainless steel, carbon steel, cast iron, and wrought iron. Non-ferrous metals do not contain iron such as aluminum, copper, zinc, nickel, tin, titanium, bronze and bronze and brass. The company continues to invest in advanced metal recovery technology in its major recycling operations. Schnitzer has launched its GRN Steel, which enables Net Zero Carbon Products Company to meet its sustainable goals that it plays in both ESG and commodity inflation. Despite the disruption of the global supply chain, demand remains high. Wise investors looking for exposure in the steel segment can see the opportunistic pullback level in shares of Schnitzer Steel.
Q2 Financial 2022 Earnings Release
On April 6, 2022, Schnitzer Steel released its financial second-quarter 2022 results for the quarter ended February 2022. The company reported earnings per share (EPS) of $ 1.38, excluding non-recurring items for the compliance analyst estimate $ 13. . Revenue grew 30.5% year-on-year (YoY) $ 783.2 million Beating analysts estimate $ 779.39 million. Sales of iron ore and non-iron ore increased by 10% and 8%, respectively. Schnitzer CEO Tamara Lundgren commented, “After delivering record first-quarter results, our second-quarter performance continued the strong financial and operating performance trend, resulting in first-half results that are the highest in our company’s 116-year history. We continue to invest in the rollout of our new advanced metal recovery technology in our major recycling operations and return capital to our shareholders through both our dividends and share repurchases while providing positive operating cash flow. “
Conference Call Takeaways
CEO Lundgren reiterated that sustainability is at the heart of what they have been doing since 1906. Corporate Knights ranked Schnitzer Steel at number 15 on their Global 100 list of the world’s most sustainable companies, and in particular its role in the global movement towards a low carbon future. CEO Lungren moved it to a rollout of zero-carbon emissions GRN steel produced from its Oregon-based cascade steel mill. This mill uses carbon-free hydropower to make low carbon steel products. Global demand for recycled metals led to rising product prices as well as quarterly growth. The October acquisition helped Columbus’s recyclable assets quarterly contribution. Schnitzer bought back 200,000 shares of stock in the quarter and distributed 112 of themM Consecutive dividends. The company has felt the pressure of disrupting the global supply chain, but demand remains strong as it expects strong results for fiscal year Q3 2022 driven by high sales volumes and strong price trends. CEO Lundgren added, “Demand for long-term products continues to grow as prices reach record highs initially due to rising construction costs. Since the end of the second quarter, we have seen a sharp rise in iron ore prices driven by the lack of semi-finished and pit-up iron exports from Ukraine and Russia. Supply flows are strong, high prices, spring weather, increased industrial activity and easy availability of trucking are somewhat better. For a strong driver.
SCHN opportunistic pullback level
Using rifle charts in weekly and daily time frames, SCHN provides an accurate view of the price action playing field for stocks. The weekly rifle chart initially hovered around $ 56.25 Fibonacci (Five) layer. The weekly uptrend’s rising 5-period moving average (MA) at $ 51.05 has a weekly 50-period MA just below $ 49.30 and the weekly 15-period MA support at $ 46.08. Weekly lower Bollinger Bands (BBs) sit at $ 33.32. The weekly stochastic has created a complete oscillation towards the 80-band as soon as it stalls. Weekly Lower Market Structure (MSL) Buy Trigger Breakout Backup for 40.48. The daily rifle chart started to break with the flat 5-period MA $ 51.04 which crossed the 15-period MA at $ 51.81. Daily 200-period MA support sits at $ 48.42 and daily 50-period MA support rises to $ 46.44. Daily low BB sits near the স্ত 44.14 fib level. Prudent investors can see favorable pullbacks at the $ 50.11 fib, $ 48.74 fib, $ 45.86 fib, $ 44.14 fib, $ 42.19 fib, and $ 37.55 fib levels. Upside trajectories range from $ 59.34 fib level to $ 70.28 fib level.