Reliance Reports Q2 Earnings Miss, Revenue Beat

Reliance, Inc. reported Q2 2024 earnings of $233.7 million, down from $267.8 million in the year-ago quarter, missing the Zacks Consensus Estimate of $4.72. Net sales rose 0.5% YoY to $3,659.8 million, beating the consensus estimate of $3,631.1 million. Shipments increased 3.9% YoY to 1,615 thousand tons, while the average selling price per ton fell 3.2% YoY to $2,273. Demand for non-residential construction improved, but aerospace demand is expected to decline in the third quarter of 2025.

Reliance, Inc. (RS) reported its Q2 2024 earnings of $233.7 million, down from $267.8 million in the year-ago quarter, missing the Zacks Consensus Estimate of $4.72 per share [1]. The company's net sales rose 0.5% year-over-year (YoY) to $3,659.8 million, surpassing the consensus estimate of $3,631.1 million. Shipments increased 3.9% YoY to 1,615 thousand tons, while the average selling price per ton fell 3.2% YoY to $2,273.

Demand for non-residential construction, including infrastructure, improved from the second quarter of 2024. However, aerospace demand is expected to decline in the third quarter of 2025, primarily due to surplus inventory in the supply chain. The company expects overall demand to remain steady in the third quarter of 2025, with adjusted earnings per share forecasted to be between $3.60 and $3.80 [2].

Reliance's shares have rallied 17% in the past year compared to a 12.2% rise in the industry. The company currently carries a Zacks Rank #3 (Hold) [2]. Better-ranked stocks worth a look in the basic materials space include Royal Gold, Inc. (RGLD), Kinross Gold Corporation (KGC), and Agnico Eagle Mines (AEM).

References:
[1] https://www.nasdaq.com/articles/reliance-rs-lags-q2-earnings-estimates
[2] https://www.tradingview.com/news/zacks:9282d7cba094b:0-reliance-s-earnings-miss-revenues-beat-estimates-in-q2/