Reliance revises projected earnings, shares shoot up
After revising its projected earnings for Q4 2005, Reliance Steel and Aluminum Co. saw its shares rise $7.14, or 9.1 percent, to $85.55 in morning
trading Thursday.
The leading metal processor and distributor announced this week that it now expects to earn $1.75 to $1.80 per share in the fourth quarter, up from its previous estimate of $1.10 to $1.20 per share.
Company CEO David H. Hannah said the new estimate is based on higher pricing and demand in the fourth quarter than company officials had expected when they issued their previous fourth quarter prediction in October.
The new estimate exceeds those of Wall Street analysts, who expect Reliance will earn approximately $1.20 per share for the quarter.
Reliance will report its fourth quarter and 2005 fiscal year results before the market opens on February 16.