Cliffs Natural Resources
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Cliffs Natural Resources missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share contracted significantly.
Margins dropped across the board.
Cliffs Natural Resources booked revenue of $1.54 billion. The 15 analysts polled by S&P Capital IQ predicted a top line of $1.71 billion on the same basis. GAAP reported sales were 28% lower than the prior-year quarter's $2.14 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.61. The 22 earnings estimates compiled by S&P Capital IQ forecast $1.07 per share. GAAP EPS of $0.59 for Q3 were 86% lower than the prior-year quarter's $4.07 per share. (The prior-year quarter included -$0.12 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 12.8%, 2,550 basis points worse than the prior-year quarter. Operating margin was 4.9%, 3,110 basis points worse than the prior-year quarter. Net margin was 5.5%, 2,200 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.69 billion. On the bottom line, the average EPS estimate is $0.90.
Next year's average estimate for revenue is $6.29 billion. The average EPS estimate is $4.84.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,505 members out of 1,565 rating the stock outperform, and 60 members rating it underperform. Among 299 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 288 give Cliffs Natural Resources a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cliffs Natural Resources is hold, with an average price target of $52.26.
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