AK Steel Earnings: Loss Widens, Falls Below Estimates
S&P 500 (NYSE:SPY) component AK Steel Holding Corp (NYSE:AKS) reported its results for the third quarter. 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.
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AK Steel Holding Corp Earnings Cheat Sheet
Results: Loss widened to $60.9 million (55 cents per diluted share) from $3.5 million (loss of 3 cents per share) in the same quarter a year earlier.
Revenue: Fell 7.7% to $1.46 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: AK Steel Holding Corp fell short of the mean analyst estimate of 6 cents per share. It fell short of the average revenue estimate of $1.55 billion.
Quoting Management: “Challenging domestic and global economic conditions continue to weigh on shipping volumes and prices,” said James L. Wainscott, Chairman, President and CEO of AK Steel. “Additionally, while we expect to enjoy lower raw material costs in the future, we are still working through some higher cost raw material inventories.”
Revenue has been on the decline for three quarters in a row. In the second quarter, revenue declined 14.1% to $1.54 billion while the figure fell 4.6% in the first quarter from the year earlier.
The company fell short of estimates last quarter after being in line with expectations the quarter before with a loss of -11 cents.
Looking Forward: Expectations for the company’s performance in the upcoming quarter are lower than they were ninety days ago. Over the past three months, the average estimate for the fourth quarter has fallen from a profit of 24 cents per share to a loss of one cent. The average estimate for the fiscal year has fallen to 8 cents per share from 48 cents ninety days ago.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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