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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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. The Motley Fool has no position in any of the stocks mentioned. 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.