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Does The Street Have AK Steel Holding Figured Out?

By Seth Jayson - Updated Apr 10, 2017 at 1:49PM

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Checking expectations

AK Steel Holding (NYSE: AKS) is expected to report Q1 earnings on April 23. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict AK Steel Holding's revenues will wither -8.5% and EPS will remain in the red.

The average estimate for revenue is $1.38 billion. On the bottom line, the average EPS estimate is -$0.11.

Revenue details
Last quarter, AK Steel Holding chalked up revenue of $1.42 billion. GAAP reported sales were 5.7% lower than the prior-year quarter's $1.51 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at -$0.30. GAAP EPS were -$1.90 for Q4 against -$1.76 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 4.9%, 110 basis points better than the prior-year quarter. Operating margin was -1.4%, 80 basis points better than the prior-year quarter. Net margin was -16.2%, 340 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $5.81 billion. The average EPS estimate is -$0.03.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 855 members out of 942 rating the stock outperform, and 87 members rating it underperform. Among 168 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 149 give AK Steel Holding a green thumbs-up, and 19 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 $5.58.

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Stocks Mentioned

AK Steel Holding Corporation Stock Quote
AK Steel Holding Corporation
AKS

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