Metalico Inc. (MEA)

[mlkrborn]

MEA $2.00 with 2Q report indicating misses:
"Metalico beats by $0.03, misses on revs (MEA) 2.04 : Reports Q2 (Jun) earnings of $0.06 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.03; revenues fell 17.0% year/year to $148.2 mln vs the $172.75 mln consensus. The current year period reflects lower selling prices in all metals year-over-year with increased volumes in some segments. In the second quarter of 2011, Metalico posted net income of $6.6 million or $0.14 per share. "Unfortunately, results were nowhere near the performance posted in the comparable period last year or for that matter in the first quarter of 2012. Scrap recycling was hurt by a significant receivable write-off from a single consumer who declared bankruptcy, along with declining commodity selling prices and compressed metal margins." After bottoming in July, ferrous market pricing rebounded sharply into August. Metalico expects steel industry capacity utilization and scrap selling prices will remain relatively stable in the near term, although some pockets of weakening mill demand may occur. The challenge will continue to be buying material at acceptable margins. This quarter the Company is emphasizing turning existing inventory, sourcing new scrap and maximizing shipments to take advantage of a recovery in scrap selling prices."