Cliffs Natural Resources Earnings: Profit Dips Behind Revenue Decline

S&P 500 (NYSE:SPY) component Cliffs Natural Resources Inc. (NYSE:CLF) saw profit fall amid falling revenue. Cliffs Natural Resources is an international mining company that operates primarily in North America and Australia.

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Cliffs Natural Resources Earnings Cheat Sheet for the Third Quarter

Results: Net income for the mining-iron fell to $85.1 million (59 cents per share) vs. $601.2 million ($4.15 per share) a year earlier. This is a decline of 85.8% from the year-earlier quarter.

Revenue: Fell 26% to $1.54 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cliffs Natural Resources Inc. fell short of the mean analyst estimate of $1.05 per share. It fell short of the average revenue estimate of $1.77 billion.

Quoting Management: Joseph A. Carrabba, Cliffs’ chairman, president and chief executive officer, said, “During this volatile pricing environment, management remains focused on executing the Phase II expansion at Bloom Lake and maintaining our cash dividend and investment-grade rating. Our U.S. Iron Ore business continues to deliver consistent performance, generating strong results quarter over quarter. With our diverse customer base in the U.S. and Asia, we believe the Company is well positioned to manage through this business cycle.”

Key Stats:

The company fell short of estimates last quarter after beating the mark the quarter before with net income of $1.81 versus a mean estimate of net income of $1.75 per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from $2.40 a share to 97 cents over the last ninety days. For the fiscal year, the average estimate has moved down from $7.28 a share to $4.47 over the last ninety days.

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

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