Thursday, October 14, 2010

Schnitzer (Nasdaq:SCHN) Quarterly Preview from Canaccord Genuity

In a earnings preview for Schnitzer Steel (Nasdaq:SCHN), Canaccord Genuity reiterated their estimates for the company, which are below consensus.

"We are comfortable with our August quarter estimates and maintain our rating in advance of Schnitzer’s FQ4 results due on Wednesday, October 20, after the market close...Our slightly below consensus FQ4 revenue/EBITDA/EPS estimates are $655.4M/$33.9M/$0.37. For comparison, consensus estimates are $669M/$34.3M/$0.39," said Canaccord.

"We anticipate management will offer relatively cautious commentary on the
current (Nov.) quarter. While ferrous scrap prices did increase in Sept., they have tumbled in October, partly as a result of temporary weakness in export demand. Our research indicates that export demand has been spotty from Asia and only recently resumed from Turkey."

Canaccord maintains their "Buy" rating on Schnitzer, which closed at $50.45, gaining $0.45, or 0.90 percent. They have a price target of $67 on the company.

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