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AK Steel's (AKS) Q3 Earnings Beat Estimates, Sales Lag
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AK Steel Holding Corporation reported net income of $50.9 million or 21 cents per share in third-quarter 2016, compared with net income of $6.7 million or 4 cents per share in the year-ago quarter. Earnings per share beat the Zacks Consensus Estimate of 13 cents.
The company's adjusted EBITDA rose 31% year over year to $156.6 million in the reported quarter. Better product mix, higher average selling price, improved carbon steel market prices, cost reduction measures and lower raw material costs led to the increase in adjusted EBITDA.
The company generated sales worth $1,425.9 million, slumping 15% from the year-ago quarter. Sales missed the Zacks Consensus Estimate of $1,447 million. Sales declined mainly due to the company’s decision to lower sales of commodity products.
Pricing and Shipments
Shipments for the quarter were down 24% year over year to 1,425,900 tons. Selling price per ton increased 11% to $1,016 from $912 in the year-ago quarter.
AK Steel exited the quarter with cash and cash equivalents of $57.5 million. Cash flows from operating activities were $287.9 million in the quarter. The company is laying importance on de-emphasizing commodity products and launching new products, such as its recently announced Nexmet line of next-generation advanced high strength steels. This enables the company to differentiate itself and to drive long-term shareholder value.
ArcelorMittal has an expected earnings growth rate of 350% for the current year.
POSCO has an expected earnings growth rate of 852.4% for the current year.
Ryerson Holding has an expected earnings growth rate of 202.2% for the current year.
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AK Steel's (AKS) Q3 Earnings Beat Estimates, Sales Lag
AK Steel Holding Corporation reported net income of $50.9 million or 21 cents per share in third-quarter 2016, compared with net income of $6.7 million or 4 cents per share in the year-ago quarter. Earnings per share beat the Zacks Consensus Estimate of 13 cents.
The company's adjusted EBITDA rose 31% year over year to $156.6 million in the reported quarter. Better product mix, higher average selling price, improved carbon steel market prices, cost reduction measures and lower raw material costs led to the increase in adjusted EBITDA.
The company generated sales worth $1,425.9 million, slumping 15% from the year-ago quarter. Sales missed the Zacks Consensus Estimate of $1,447 million. Sales declined mainly due to the company’s decision to lower sales of commodity products.
Pricing and Shipments
Shipments for the quarter were down 24% year over year to 1,425,900 tons. Selling price per ton increased 11% to $1,016 from $912 in the year-ago quarter.
Financials
AK Steel exited the quarter with cash and cash equivalents of $57.5 million. Cash flows from operating activities were $287.9 million in the quarter.
The company is laying importance on de-emphasizing commodity products and launching new products, such as its recently announced Nexmet line of next-generation advanced high strength steels. This enables the company to differentiate itself and to drive long-term shareholder value.
AK STEEL HLDG Price, Consensus and EPS Surprise
AK STEEL HLDG Price, Consensus and EPS Surprise | AK STEEL HLDG Quote
Zacks Rank
AK Steel currently carries a Zacks Rank #2 (Buy).
Other well-ranked companies in the steel space include ArcelorMittal (MT - Free Report) , POSCO (PKX - Free Report) and Ryerson Holding Corp. (RYI - Free Report) all carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
ArcelorMittal has an expected earnings growth rate of 350% for the current year.
POSCO has an expected earnings growth rate of 852.4% for the current year.
Ryerson Holding has an expected earnings growth rate of 202.2% for the current year.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>