Gerdau (NYSE:GGB) Releases Earnings Results, Misses Estimates By $0.04 EPS

Gerdau (NYSE:GGB) issued its quarterly earnings results on Monday. The basic materials company reported $0.07 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.11 by ($0.04), Zacks reports. The company had revenue of $3.08 billion for the quarter, compared to analysts’ expectations of $3.12 billion. Gerdau had a return on equity of 6.18% and a net margin of 1.93%.

Gerdau Price Performance

Gerdau stock opened at $4.08 on Wednesday. The firm has a market capitalization of $8.14 billion, a P/E ratio of 33.96, a PEG ratio of 1.18 and a beta of 1.46. Gerdau has a one year low of $2.27 and a one year high of $4.66. The company has a debt-to-equity ratio of 0.30, a current ratio of 2.70 and a quick ratio of 1.47. The business has a fifty day moving average price of $4.07 and a 200-day moving average price of $3.57.

Wall Street Analyst Weigh In

A number of research firms have issued reports on GGB. Zacks Research raised Gerdau from a “strong sell” rating to a “hold” rating in a research report on Tuesday, November 18th. UBS Group reiterated a “buy” rating and set a $4.60 price target (up from $4.00) on shares of Gerdau in a research note on Monday, December 15th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Gerdau in a report on Monday, December 29th. One research analyst has rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $4.60.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Bank of America Corp DE grew its holdings in Gerdau by 22.4% during the 3rd quarter. Bank of America Corp DE now owns 15,894,871 shares of the basic materials company’s stock valued at $49,274,000 after buying an additional 2,910,482 shares in the last quarter. SPX Gestao de Recursos Ltda boosted its position in shares of Gerdau by 9.0% in the fourth quarter. SPX Gestao de Recursos Ltda now owns 4,894,496 shares of the basic materials company’s stock valued at $18,061,000 after acquiring an additional 403,454 shares during the period. Millennium Management LLC boosted its position in shares of Gerdau by 54.6% in the first quarter. Millennium Management LLC now owns 4,363,764 shares of the basic materials company’s stock valued at $12,393,000 after acquiring an additional 1,541,311 shares during the period. Mackenzie Financial Corp grew its stake in Gerdau by 80.6% during the fourth quarter. Mackenzie Financial Corp now owns 4,117,253 shares of the basic materials company’s stock valued at $15,286,000 after acquiring an additional 1,837,160 shares in the last quarter. Finally, State Street Corp grew its stake in Gerdau by 5.7% during the fourth quarter. State Street Corp now owns 3,531,028 shares of the basic materials company’s stock valued at $13,029,000 after acquiring an additional 190,483 shares in the last quarter. Institutional investors own 1.49% of the company’s stock.

About Gerdau

Gerdau SA is a Brazilian-based steel producer engaged in the manufacture and distribution of long steel products for the construction, industrial and agricultural sectors. Established in 1901, the company operates an integrated network of electric-arc furnaces and rolling mills, producing reinforcement bars, wire rod, merchant bars and structural shapes. Gerdau’s product portfolio also includes specialty long steel, high-yield reinforcement, rail, beams and steel coils, as well as value-added processing services such as cutting, bending and coating.

The company has expanded its footprint beyond Brazil, with significant operations in North America, South America and a presence in select European markets.