Cliffs Natural Resources
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Cliffs Natural Resources beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Cliffs Natural Resources logged revenue of $1.66 billion. The 12 analysts polled by S&P Capital IQ foresaw net sales of $1.61 billion on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $1.42 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $1.42. The 18 earnings estimates compiled by S&P Capital IQ averaged $1.60 per share on the same basis. GAAP EPS of $1.39 for Q4 were 51% lower than the prior-year quarter's $2.82 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 29.7%, 600 basis points worse than the prior-year quarter. Operating margin was 23.0%, 670 basis points worse than the prior-year quarter. Net margin was 11.9%, 1,510 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.36 billion. On the bottom line, the average EPS estimate is $1.30.
Next year's average estimate for revenue is $7.43 billion. The average EPS estimate is $9.85.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cliffs Natural Resources is outperform, with an average price target of $103.19.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.