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Cliffs (CLF) Tops Q4 Earnings and Sales Estimate

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Cliffs Natural Resources Inc. (CLF - Free Report) is a leading mining and natural resources company. Cliffs is the largest producer of iron ore pellets in North America.

Cliffs is focused on deleveraging its balance sheet, improving the cost structure and managing cash efficiently. The company is expected to gain from ArcelorMittal and U.S. Steel Canada deals and an expected rise in steel demand in the U.S.

Let’s have a quick look at this Ohio-based company’s fourth-quarter 2016 release.

Estimate Trend & Surprise History

Investors should note that the earnings estimate for Cliffs for the fourth quarter has seen an uptrend over the past month. Cliffs has beaten the Zacks Consensus Estimate in 3 of the trailing 4 quarters, while missing in one, with an average positive beat of around 55.40%.

Earnings

Cliffs’ adjusted earnings for the quarter came in at 41 cents per share, beating the Zacks Consensus Estimate of 25 cents.

Revenues

Cliffs reported revenues of $754 million. That also beat the Zacks Consensus Estimate of $688.5 million.

Key Stats/Developments to Note

For 2017, Cliffs expects to generate net income of $510 million. The company projects its full-year selling, general and administrative (SG&A) expenses to be around $100 million, an $18 million decrease from 2016. Cliffs expects its 2017 capital expenditures to be $105 million.

Zacks Rank

Currently, Cliffs has a Zacks Rank #2 (Buy).

Market Reaction

Cliffs’ shares were up around 9% in the pre-market trading. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on Cliffs’ earnings report!

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