Algoma Steel Group Inc Up 1.67% To $7.31 After Earnings Miss

Algoma Steel Group Inc (ASTL) reported less than expected earnings this afternoon for Q2 2024.

Wall Street earnings per share (EPS) projections for Algoma Steel Group Inc were at $0.29. The company missed those estimates with an EPS of $0.18. The earnings per share of $0.18 (which represents a -38% EPS surprise) led to the company's profits falling 36% compared to last year when the firm reported an EPS of $0.28. The decline in Algoma Steel Group Inc's annual growth rate represents how the business isn't performing well amid current economic conditions.

Revenues were downbeat at $546.1 million. That is an increase of 18.88% in revenues from the year-ago report and is 21.19% lower than consensus estimates set at $692.9 million.

The stock is up 1.67% to $7.31 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

Wall Street Analysts had an average rating of Strong Buy on the stock prior to the report.

InvestorsObserver gives the stock a Bullish Sentiment score at the moment based on recent trading.

Prior to the report, InvestorsObserver gave the stock an overall score of 63. Meanwhile, the average Wall Street analyst rated the stock a Strong Buy.

Algoma Steel Group Inc is a Canadian company that produces clean and consistent light gauge steel in North America, offering a range of hot and cold rolled steel sheet and plate products. The firm operates in a single segment of basic steel production. Geographically it serves Canada, the United States and the rest of the world, whilst driving key revenue from domestic sales. Substantial revenue is generated from the sale of Steel sheets and strips.