TimkenSteel Corporation TMST recently announced that its board approved a share buyback program. According to the program, the company may repurchase outstanding common shares worth up to $50 million.
The board also approved the capital expenditure budget of $40 million for 2022.
TimkenSteel intends to use methods like open market repurchases, including repurchases through Rule 10b5-1 plans, and privately-negotiated transactions for the buyback of shares. The price of shares, general market and economic conditions, capital needs and other factors will determine the actual timing, number and value of shares repurchased under the program, if any.
The buyback program does not necessitate the procurement of any dollar amount or number. It could be modified, suspended, extended or terminated by the company at any time without former notice.
The company stated that this buyback program reflects the board's and senior leadership's confidence in its ability to generate sustainable through-cycle profitability while maintaining a strong balance sheet and cash flow. Given its significant transformation in the past two years, it now has the financial flexibility to return capital to shareholders while also investing in the business to drive profitable growth.
The company expects capital expenditures in the band of $15-$20 million for 2021.
TimkenSteel raised its 2022 capital expenditure budget to $40 million with over half of the amount dedicated to high-return internal investment projects.
Shares of TimkenSteel have surged 248.9% in the past year compared with a 36.9% rise of the industry.
Image Source: Zacks Investment Research
TimkenSteel sees fourth-quarter shipment to be lower than third-quarter levels. Although its order book is full for the rest of 2021, fourth-quarter shipments are expected to be affected by reduced melt utilization stemming from the recently completed annual Faircrest melt shop maintenance shutdown. The company also noted that periodic automotive customer manufacturing outages due to the chip shortage might impact mobile shipments in the fourth quarter.
Zacks Rank & Other Key Picks
TimkenSteel currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the basic materials space are Nutrien (NYSE:NTR) Ltd. NTR, The Chemours Company (NYSE:CC) CC and AdvanSix (NYSE:ASIX) Inc. ASIX.
Nutrien has an expected earnings growth rate of 233.3% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 16.3% upward in the past 60 days.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters. The company has a trailing four-quarter earnings surprise of roughly 73.5%, on average. The stock has increased 44.1% in a year. NTR currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Chemours has an expected earnings growth rate of 105.1% for the current year. The Zacks Consensus Estimate for the current year has been revised 10% upward in the past 60 days.
Chemours beat the Zacks Consensus Estimate for earnings in all of the last four quarters. The company has a trailing four-quarter earnings surprise of roughly 34.2%, on average. CC has increased 22.8% over a year. Chemours currently sports a Zacks Rank #1.
AdvanSix has a projected earnings growth rate of 194.5% for the current year. ASIX's consensus estimate for the current year has been revised 5.9% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 127.6%. ASIX has rallied 123.5% in a year. AdvanSix currently flaunts a Zacks Rank #1.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Timken Steel Corporation (TMST): Free Stock Analysis Report
The Chemours Company (CC): Free Stock Analysis Report
AdvanSix (ASIX): Free Stock Analysis Report
Nutrien Ltd. (NTR): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research