AK Steel Holding
The 10-second takeaway
For the quarter ended June 30 (Q2), AK Steel Holding met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted to a loss.
Gross margins were steady, operating margins shrank, net margins contracted.
AK Steel Holding booked revenue of $1.54 billion. The 14 analysts polled by S&P Capital IQ hoped for sales of $1.55 billion on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $1.79 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 $0.10. The 18 earnings estimates compiled by S&P Capital IQ predicted $0.05 per share. GAAP EPS were -$6.57 for Q2 compared to $0.30 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 9.5%, about the same as the prior-year quarter. Operating margin was 3.7%, 20 basis points worse than the prior-year quarter. Net margin was -47.1%, 4,890 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.49 billion. On the bottom line, the average EPS estimate is -$0.02.
Next year's average estimate for revenue is $6.11 billion. The average EPS estimate is -$0.05.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 858 members out of 942 rating the stock outperform, and 84 members rating it underperform. Among 166 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 144 give AK Steel Holding a green thumbs-up, and 22 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AK Steel Holding is hold, with an average price target of $7.48.
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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.