In a sea of red, this ASX All Ordinaries share is surging 5%. Here's why

Here's what's boosting this All Ords stock higher amid today's downturn.

Key points
  • The Vulcan Steel share price is besting its All Ordinaries peers on Tuesday, gaining 5% to trade at $9.60 
  • Its gain comes after the company upgraded its guidance for financial year 2022
  • Now, the company expects to report up to approximately $133 million of NPAT and up to around $201 million of EBITDA

Tuesday is proving to be one of the worst days for the broader market this year, with the All Ordinaries Index (ASX: XAO) plummeting 1.89%, taking many share prices down with it.

But one share has managed to cling to a life raft, gaining 5% despite the market's slump.

The share price of the All Ordinaries' Vulcan Steel Ltd (ASX: VSL) is rising on the back of a trading update and guidance upgrade. Right now, it's 5.03% higher than its previous close, trading at $9.60.

Let's take a closer look at what's buoying the industrial product distributor's stock today.

a female steel worker wearing a high visibility vest with her protective helmet tucked under her arm smiles as she carries a clipboard in a large warehouse of steel products.

Image source: Getty Images

This All Ordinaries share is taking off on Tuesday

All Ordinaries share, Vulcan Steel is on the up and up on Tuesday following the company's latest update.

The company announced that its revenue for the 9 months ended 31 March is up 34% year on year. It's come in at approximately NZ$700 million (around $644.7 million).

The company's overall sales volumes have also jumped 5% this year.

Its steel segment has been the biggest driver of the increase. It's sporting a 42% increase in revenue.

Meanwhile, the company's metals segment's revenue has recorded a 21% year on year boost.

In response to its higher revenue, as well as a particularly strong period of trade from February through to early April, the All Ordinaries share has upped its financial year 2022 guidance.

Vulcan Steel previously said it expected to bring in between NZ$150 million and NZ$160 million (approximately $138 million to $147 million) of pro forma earnings before interest, tax, depreciation, and amortisation (EBITDA) and prior to IFRS this financial year.

It also predicted it would report between NZ$97 million and NZ$104 million (approximately $89 million to $96 million) of pro forma net profit after tax (NPAT) prior to IFRS.

Now, the company expects it will report pro forma EBITDA of $212 million to $218 million (approximately $195 million to $201 million) pre-IFRS. The boost represents a 23% increase on its previous guidance.

Its NPAT is now expected to come to between NZ$140 million and NZ$144 million (approximately $129 million to $133 million), pre-IFRS. That represents a 24% increase.

What did management say?

Vulcan Steel managing director and CEO, Rhys Jones commented on the news driving the All Ordinaries share upwards today, saying:

Despite disruptions caused by COVID-19 and adverse weather in Australia, Vulcan's operations and financial performance have remained strong in the past three months.

The geopolitical uncertainty in Europe has added more volatility to global supply chains and product prices for many industries including the steel sector.

Vulcan Steel share price snapshot

Today's gain has boosted the All Ordinaries share into the year to date green.

Right now, the Vulcan Steel share price is 1% higher than it was at the start of 2022.

It has also gained nearly 34% since it floated on the ASX in November.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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