Cliffs Natural Resources Earnings: Here’s Why Investors Like These Results

Cliffs Natural Resources Inc. (NYSE:CLF) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 4.72%.

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Cliffs Natural Resources Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 29.41% to $0.6 in the quarter versus EPS of $0.85 in the year-earlier quarter.

Revenue: Decreased 9.78% to $1.14 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cliffs Natural Resources Inc. reported adjusted EPS income of $0.6 per share. By that measure, the company beat the mean analyst estimate of $0.32. It missed the average revenue estimate of $1.19 billion.

Quoting Management: Joseph Carrabba, Cliffs’ chairman, president and chief executive officer, said, “We are headed in the right direction in 2013. During the first quarter, we took deliberate measures to reduce our balance sheet leverage and improve our cash position. Also, our operating teams are taking a pragmatic approach to reduce operating costs across the board. We expect these initiatives will position the Company to successfully manage through volatile pricing environments.”

Key Stats (on next page)…

Revenue decreased 25.71% from $1.54 billion in the previous quarter. EPS increased 46.34% from $0.41 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.74 to a profit $0.53. For the current year, the average estimate has moved down from a profit of $3.16 to a profit of $1.8 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]