AK Steel Third Quarter Earnings Sneak Peek

AK Steel Holding Corporation (NYSE:AKS) will unveil its latest earnings on Tuesday, October 23, 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 a loss of 38 cents per share, a spike from net income of 2 cents in the year-ago quarter. During the past three months, the average estimate has moved down from a loss of one cent. Between one and three months ago, the average estimate moved down. It has risen from a loss of 40 cents during the last month. For the year, analysts are projecting net loss of 40 cents per share, a spike from profit of 17 cents last year.

Past Earnings Performance: The company topped forecasts last quarter after being in line with estimates the quarter prior. In the second quarter, it reported net income of 10 cents per share versus a mean estimate of 6 cents. Two quarters ago, it reported a loss of 11 cents per share.

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A Look Back: In the second quarter, the company swung to a loss of $724.2 million ($6.55 a share) from a profit of $33.1 million (30 cents) a year earlier, but beat analyst expectations. Revenue fell 14.1% to $1.54 billion from $1.79 billion.

Stock Price Performance: Between July 24, 2012 and October 17, 2012, the stock price rose 83 cents (16.9%), from $4.89 to $5.72. The stock price saw one of its best stretches over the last year between September 5, 2012 and September 13, 2012, when shares rose for seven straight days, increasing 31.7% (+$1.55) 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: On average, analysts predict $1.47 billion in revenue this quarter, a decline of 7.5% from the year-ago quarter. Analysts are forecasting total revenue of $6.01 billion for the year, a decline of 7.1% from last year’s revenue of $6.47 billion.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 4.6% in the first quarter and dropped again in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.1 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 regressed in this liquidity measure from 1.34 in the first quarter to the last quarter driven in part by a decrease in current assets. Current assets decreased 10.7% to $1.38 billion while liabilities rose by 8.8% to $1.25 billion.

Analyst Ratings: With five analysts rating the stock a sell, three rating it as a buy and five rating it as a hold, there are indications of a bearish outlook.

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

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