Deutsche Bank Previews 3Q Steel Dynamics, Shares Up 3%

Deutsche Bank issued a 3Q 2014 preview for Steel Dynamics, Inc. STLD on Thursday and expected higher shipments and spread.

Analyst Jorge Beristain expected the company to "report 3Q14 adjusted EPS of $0.44 (+42 percent QoQ, +76 percent YoY) with sequential improvement primarily driven by higher shipments and metal spreads across steel operations."

Beristain estimated 3Q 2014 "EBITDA of $247 million (+30 percent QoQ) and EBIT of $190 million (+44 percent). EBIT for its Steel operations segment is expected to increase to $208 million (+34 percent QoQ) on higher shipments of 1.6 million st (+2 percent), flat realization of $833/st and lower scrap costs of $357/st (-2 percent)."

The company’s 3Q results will be released Monday, October 20.

The firm maintained a Buy rating and $27 price target.

Steel Dynamics, Inc. recently traded at $21.57, up 3.01 percent.