AK Steel Holding
The 10-second takeaway
For the quarter ended June 30 (Q2), AK Steel Holding met expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share contracted to a loss. GAAP loss per share shrank.
Gross margins contracted, operating margins contracted, net margins grew.
AK Steel Holding reported revenue of $1.40 billion. The 11 analysts polled by S&P Capital IQ predicted a top line of $1.42 billion on the same basis. GAAP reported sales were 8.7% lower than the prior-year quarter's $1.54 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 -$0.15. The 15 earnings estimates compiled by S&P Capital IQ predicted -$0.33 per share. Non-GAAP EPS were -$0.15 for Q2 versus $0.10 per share for the prior-year quarter. GAAP EPS were -$0.30 for Q2 against -$6.55 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 6.8%, 270 basis points worse than the prior-year quarter. Operating margin was 1.0%, 270 basis points worse than the prior-year quarter. Net margin was -2.9%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.42 billion. On the bottom line, the average EPS estimate is -$0.05.
Next year's average estimate for revenue is $5.69 billion. The average EPS estimate is -$0.47.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 863 members out of 950 rating the stock outperform, and 87 members rating it underperform. Among 182 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 162 give AK Steel Holding a green thumbs-up, and 20 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 $4.21.
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