Demo
ZEUS Nasdaq· Olympic Steel Inc
FundamentalsNews digest Peer analysis
Login
ZEUS Nasdaq· Olympic Steel Inc
Earnings report Q4 2023

ZEUS Reports Decline in Revenue for Latest Quarter

Segments of revenue

In the latest quarter, ZEUS reported a decline in revenue across its segments. The specialty metals flat products segment, which represents a significant portion of the company's revenue, experienced a decrease in net sales from $776.02 million in 2022 to $567.73 million in 2023. This decline can be attributed to a decrease in direct tons sold, which dropped from 135,584 tons in 2022 to 112,412 tons in 2023. Additionally, the average selling price per ton decreased from $5,461 to $4,912 during the same period.

Strengths

Despite the decline in revenue, ZEUS continues to make regular quarterly dividend distributions, demonstrating its commitment to shareholders. The company's management has expressed their intention to maintain these dividend distributions in the future, subject to the best interest of shareholders.

Challenges

ZEUS faces several challenges based on its financial performance. The company's quarterly results have historically been volatile, and this trend is expected to continue in the future. Fluctuations in operating results may be below the expectations of investors and stock market analysts due to factors such as the impact of LIFO estimates, which are beyond the company's control. Additionally, ZEUS operates in an industry where revenues and operating results can vary significantly, making quarter-to-quarter comparisons less meaningful.

Noteworthy

It is worth noting that ZEUS recorded a lower income tax provision in 2023 compared to 2022, with a provision of 27.7% in 2023 and 26.4% in 2022. Furthermore, the company's net income decreased from $90.9 million in 2022 to $44.5 million in 2023.

Summary

ZEUS reported a decline in revenue for the latest quarter, primarily driven by a decrease in direct tons sold and average selling price per ton in the specialty metals flat products segment. The company continues to face challenges related to the volatility of its operating results and the potential impact of factors beyond its control. However, ZEUS remains committed to providing regular dividend distributions to its shareholders.

Source documents

Form 10-K  filed on Feb 23, 2024
111 pages scanned

Reference data

Company financials Q4 revenue 489M
Analyst estimates Q4 EPS beat by 80.00%
Sign up to Fey

Get in-depth analysis on thousands of stocks for just $30/month. Cancel anytime.