Stock Analysis

Salzgitter Full Year 2023 Earnings: EPS Beats Expectations

Simply Wall St

March 19, 2024

Salzgitter (ETR:SZG) Full Year 2023 Results

Key Financial Results

Revenue: €10.8b (down 14% from FY 2022).
Net income: €200.1m (down 82% from FY 2022).
Profit margin: 1.9% (down from 8.6% in FY 2022). The decrease in margin was driven by lower revenue.
EPS: €3.70 (down from €20.00 in FY 2022).

revenue-and-expenses-breakdown — XTRA:SZG Revenue and Expenses Breakdown March 19th 2024

All figures shown in the chart above are for the trailing 12 month (TTM) period

Salzgitter EPS Beats Expectations

Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2.0%.

The primary driver behind last 12 months revenue was the Steel Production segment contributing a total revenue of €4.82b (45% of total revenue). Notably, cost of sales worth €7.42b amounted to 69% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to €1.95b (59% of total expenses). Over the last 12 months, the company's earnings were enhanced by non-operating gains of €154.7m. Explore how SZG's revenue and expenses shape its earnings.

Looking ahead, revenue is expected to decline by 2.1% p.a. on average during the next 3 years, while revenues in the Metals and Mining industry in Europe are expected to grow by 1.1%.

Performance of the market in Germany.

The company's shares are down 1.3% from a week ago.

Risk Analysis

It's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Salzgitter, and understanding these should be part of your investment process.

Valuation is complex, but we're helping make it simple.

Find out whether Salzgitter is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.