Gerdau (NYSE:GGB) Posts Quarterly Earnings Results, Misses Estimates By $0.31 EPS

Gerdau (NYSE:GGB) announced its quarterly earnings results on Sunday. The basic materials company reported $1.96 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $2.27 by ($0.31), Fidelity Earnings reports. Gerdau had a net margin of 19.01% and a return on equity of 35.05%.

GGB stock opened at $4.96 on Tuesday. The stock has a market capitalization of $8.53 billion, a PE ratio of 3.94, a price-to-earnings-growth ratio of 0.22 and a beta of 1.58. Gerdau has a 12-month low of $3.68 and a 12-month high of $7.27. The company has a current ratio of 2.58, a quick ratio of 1.32 and a debt-to-equity ratio of 0.45. The stock’s 50 day simple moving average is $5.37 and its 200 day simple moving average is $5.75.

The business also recently declared a Variable dividend, which will be paid on Tuesday, November 23rd. Investors of record on Thursday, September 30th will be paid a $0.0814 dividend. The ex-dividend date of this dividend is Wednesday, September 29th. This represents a dividend yield of 7.2%. This is an increase from Gerdau’s previous Variable dividend of $0.01. Gerdau’s dividend payout ratio is presently 111.11%.

Several research firms recently issued reports on GGB. Zacks Investment Research lowered Gerdau from a “buy” rating to a “hold” rating in a research note on Tuesday, September 21st. Credit Suisse Group raised Gerdau from a “neutral” rating to an “outperform” rating in a research note on Thursday, September 9th. Finally, Scotiabank raised Gerdau from a “sector perform” rating to an “outperform” rating in a research note on Tuesday, September 7th. Three investment analysts have rated the stock with a hold rating and four have assigned a buy rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Buy” and an average target price of $6.25.

An institutional investor recently raised its position in Gerdau stock. Wells Fargo & Company MN boosted its holdings in Gerdau S.A. (NYSE:GGB) by 46.1% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 46,006 shares of the basic materials company’s stock after acquiring an additional 14,514 shares during the quarter. Wells Fargo & Company MN’s holdings in Gerdau were worth $272,000 at the end of the most recent quarter. 2.69% of the stock is owned by institutional investors and hedge funds.

Gerdau Company Profile

Gerdau SA engages in the production and commercialization of steel products. It operates through the following segments: Brazil Operation, North America Operation, South Africa Operation, and Special Steels Operation. The Brazil Operation segment includes rebar, bars, shapes, drawn products, billets, blooms, slabs; wire rod, structural shapes, and iron ore.

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Earnings History for Gerdau (NYSE:GGB)

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