Is ZEUS a buy after Q4 earnings surprise?

**Olympic Steel (ZEUS) does not appear to be a strong buy after its Q4 earnings surprise**, based on the following analysis: 1. **Earnings Performance**: Olympic Steel reported an actual EPS of $0.13 for Q4 2024, which is below the estimated EPS of $0.17. This indicates that the company's actual performance was weaker than expected. 2. **Revenue Performance**: The actual revenue for Q4 2024 was $418.78 million, compared to the estimated revenue of $462.6 million. This suggests that the company's revenue fell short of expectations. 3. **Market Reaction**: The stock experienced a decline of 1.62% on February 3, 2025, following the earnings release. Additionally, the post-market percentage change on February 21, 2025, was only 1.08%, which does not indicate a strong positive market reaction. |code|Ticker|Name|Date|Percentage Change|market_code| |---|---|---|---|---|---| |ZEUS|ZEUS.O|Olympic Steel|20250203|-1.6246|185| |code|Ticker|Name|Date|Post-Market Percentage Change|market_code| |---|---|---|---|---|---| |ZEUS|ZEUS.O|Olympic Steel|20250131|0|185| |code|Ticker|Name|Date|Post-Market Percentage Change|market_code| |---|---|---|---|---|---| |ZEUS|ZEUS.O|Olympic Steel|20250221|1.0824|185| 4. **Challenges and Strategic Moves**: The company has faced challenges, as evidenced by a decrease in adjusted EBITDA and a tougher financial backdrop compared to the previous year. Despite this, the company has made strategic moves, which could potentially improve its long-term prospects. 5. **Institutional Confidence**: There is some institutional confidence in Olympic Steel, as shown by the new acquisition by the Louisiana State Employees Retirement System. However, this does not necessarily translate to an immediate buy recommendation. 6. **Mixed Year-End Results**: Olympic Steel reported mixed year-end results, with Q4 net income rising to $7.4 million from $4.0 million in the prior year, but the full-year EPS decreased to $3.85 from $7.87 in 2022. This mixed trend suggests that while there is potential, it may not be immediately apparent. In conclusion, while Olympic Steel has made strategic moves and there is some institutional confidence, the Q4 earnings surprise with lower-than-expected EPS and revenue, along with a lackluster market reaction, suggests that it may not be a strong buy at this time. Investors should consider the company's long-term potential and the strategic moves being made, but the current earnings performance does not strongly support a "buy" recommendation.