Cliffs Natural Resources
The 10-second takeaway
For the quarter ended June 30 (Q2), Cliffs Natural Resources missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Cliffs Natural Resources recorded revenue of $1.63 billion. The 16 analysts polled by S&P Capital IQ looked for sales of $1.76 billion on the same basis. GAAP reported sales were 10.0% lower than the prior-year quarter's $1.81 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 $1.81. The 21 earnings estimates compiled by S&P Capital IQ anticipated $1.81 per share. GAAP EPS of $1.81 for Q2 were 38% lower than the prior-year quarter's $2.92 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 27.6%, 1,550 basis points worse than the prior-year quarter. Operating margin was 22.5%, 1,600 basis points worse than the prior-year quarter. Net margin was 15.9%, 670 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.99 billion. On the bottom line, the average EPS estimate is $2.37.
Next year's average estimate for revenue is $7.03 billion. The average EPS estimate is $7.76.
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 $79.26.
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