Reliance Steel (RS) to Post Q2 Earnings: What's in the Cards?

Reliance Steel & Aluminum Co. RS is scheduled to come up with its second-quarter 2022 results before the opening bell on Jul 28. Benefits of strong demand across key end-use markets, acquisitions and higher year over year prices are expected to reflect on its second-quarter results.

The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 13.8%. It delivered an earnings surprise of roughly 16.9% in the last reported quarter.

Shares of Reliance Steel are up 22.5% over a year compared with the industry’s rise of 10.2%.

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Let’s see how things are shaping up for this announcement.

What do the Estimates Say?

The Zacks Consensus Estimate for revenues for Reliance Steel for the second quarter is currently pinned at $4,583 million, indicating a 34% year-over-year rise.

The Zacks Consensus Estimate for shipments for the quarter currently stands at 1,445,000 tons, reflecting a 1.5% year-over-year rise. The consensus estimate for average prices per ton sold stands at $3,146, suggesting a 30.1% year-over-year increase.

Factors at Play

Reliance Steel is expected to have gained from strong underlying demand in the majority of its end markets in the quarter to be reported. Demand in non-residential construction, which is Reliance Steel’s biggest end-market, has gradually strengthened. Demand in this market is expected to have remained strong in the June quarter.

Reliance Steel is also likely to have witnessed continued strength in semiconductors and sustained recovery in the energy (oil and natural gas) market in the second quarter. Demand in the heavy industry for both agricultural and construction equipment is also likely to have improved in the quarter. The company is also expected to have witnessed improved demand in commercial aerospace on higher activities.

The company has also been following an aggressive acquisition strategy for a while as part of its core business policy to drive operating results. Its latest acquisitions of Rotax Metals, Admiral Metals and Nu-Tech Precision Metals are likely to have contributed to its top line in the June quarter.

Reliance Steel is also likely to have benefited from continued strength in pricing for the majority of its products. Higher year over year average selling prices are expected to have contributed to its second-quarter performance.

Reliance Steel & Aluminum Co. Price and EPS Surprise

Reliance Steel & Aluminum Co. price-eps-surprise | Reliance Steel & Aluminum Co. Quote

Zacks Model

Our proven model does not conclusively predict an earnings beat for Reliance Steel this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.

Earnings ESP: Earnings ESP for Reliance Steel is 0.00%. The Zacks Consensus Estimate for earnings for the second quarter is currently pegged at $9.02. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Reliance Steel currently carries a Zacks Rank #3 (Hold).

Stocks That Warrant a Look

Here are some companies in the basic materials space you may want to consider as our model shows these have the right combination of elements to post an earnings beat this quarter:

Albemarle Corporation ALB, scheduled to release earnings on Aug 3, has an Earnings ESP of +11.87% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Albemarle's second-quarter earnings has been revised 21.5% upward over the past 60 days. The consensus estimate for ALB’s earnings for the quarter is currently pegged at $2.94.

Celanese Corporation CE, scheduled to release earnings on Jul 28, has an Earnings ESP of +1.03% and carries a Zacks Rank #3.

The Zacks Consensus Estimate for Celanese’s second-quarter earnings has been revised 3.9% upward over the past 60 days. The Zacks Consensus Estimate for CE’s earnings for the quarter is currently pegged at $4.58.

FMC Corporation FMC, slated to release earnings on Aug 2, has an Earnings ESP of +0.62% and carries a Zacks Rank #3.

The Zacks Consensus Estimate for FMC’s second-quarter earnings has been stable over the past 60 days. The consensus estimate for FMC’s earnings for the second quarter stands at $1.90.


Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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