AK Steel’s Second Quarter Earnings Sneak Peek

AK Steel Holding Corporation (NYSE:AKS) will unveil its latest earnings on Tuesday, July 24, 2012. AK Steel Holding is a holding company of AK Steel Corporation. The steelmaker makes such products as flat-rolled carbon, stainless and electrical steels, and aluminum-coated stainless steel. .

AK Steel Holding Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 6 cents per share, a decline of 81.3% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 22 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 7 cents during the last month. Analysts are projecting net loss of 8 cents per share versus net income of 17 cents last year.

Past Earnings Performance: The company met estimates last quarter after beating the forecasts in the prior two. In the first quarter, the company reported a loss of 11 cents per share versus a mean estimate of net loss of 11 cents per share. In the fourth quarter of the last fiscal year, the company beat estimates by 14 cents.

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A Look Back: In the first quarter, the company swung to a loss of $11.8 million (11 cents a share) from a profit of $8.7 million (8 cents) a year earlier, meeting analyst expectations. Revenue fell 4.6% to $1.51 billion from $1.58 billion.

Stock Price Performance: Between April 23, 2012 and July 18, 2012, the stock price fell $2.01 (-27.4%), from $7.34 to $5.33. The stock price saw one of its best stretches over the last year between March 12, 2012 and March 19, 2012, when shares rose for six straight days, increasing 20.6% (+$1.47) over that span. It saw one of its worst periods between November 14, 2011 and November 25, 2011 when shares fell for nine straight days, dropping 23% (-$2.10) over that span.

Wall St. Revenue Expectations: Analysts are projecting a decline of 13.4% in revenue from the year-earlier quarter to $1.55 billion.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 12.3% in the second quarter of the last fiscal year, 0.6% in the third quarter of the last fiscal year and 8.5%in the fourth quarter of the last fiscal year before dropping in the first quarter.

Analyst Ratings: There are mostly holds on the stock with seven of 13 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.34 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company improved this liquidity measure from 1.12 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in current assets. Current assets increased 21.7% to $1.55 billion while liabilities rose by 1.4% to $1.15 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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