AK Steel Holding Corporation reported net income of $56.6 million or 18 cents per share in the second quarter of 2018, down roughly 27% from net income of $77.2 million or 24 cents recorded in the prior-year quarter.
Adjusted earnings of 22 cents per share missed the Zacks Consensus Estimate of 23 cents.
Total operating costs in the quarter rose around 14.3% year over year to roughly $1,647.1 million.
Net sales of $1,746.6 million in the second quarter rose around 12% year over year, topping the Zacks Consensus Estimate of $1,737 million.
AK Steel Holding Corporation Price, Consensus and EPS Surprise
Pricing and Shipments
Flat-rolled steel shipments in the second quarter were up around 0.4% year over year to 1,439,800 tons. Average selling price per ton for flat-rolled steel rose 6% to $1,101.
Financials
AK Steel exited second-quarter 2018 with cash and cash equivalents of $46 million compared with $136.3 million in prior-year quarter. The company had $908.5 million available under its revolving credit facility at the end of the quarter under review.
The company’s long-term debt rose roughly 21% year over year to $2,036.6 million.
Cash flow from operating activities was $187.4 million in the first half compared with $203.2 million a year ago.
Guidance
The company expects market conditions to remain strong in the third quarter. For the quarter, AK Steel expects flat-rolled shipments to be 5% higher from the second quarter. It anticipates average selling price per flat-rolled ton to be $1,105 in the third quarter. The company also anticipates an improvement in pricing and shipment to be, in part, offset by the outage at one of its temper mills. As a result, it expects margins to improve around 50 basis points from the second quarter of 2018.
Price Performance
Shares of AK Steel have lost 2.7% in the past six months, modestly outperforming the industry’s 3.6% decline.
Zacks Rank & Other Stocks to Consider
AK Steel currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the basic materials space are BHP Billiton Limited (BHP - Free Report) , Olympic Steel, Inc. (ZEUS - Free Report) and Steel Dynamics Inc. (STLD - Free Report) . All three stocks carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BHP Billiton has an expected long-term earnings growth rate of 5.3%. Its shares have gained 27% in a year’s time.
Olympic Steel has an expected long-term earnings growth rate of 7.5%. Its shares have gained 26.2% over a year.
Steel Dynamics has an expected long-term earnings growth rate of 12%. The stock has rallied 35.3% in the past year.
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AK Steel Holding Corporation reported net income of $56.6 million or 18 cents per share in the second quarter of 2018, down roughly 27% from net income of $77.2 million or 24 cents recorded in the prior-year quarter.
Adjusted earnings of 22 cents per share missed the Zacks Consensus Estimate of 23 cents.
Total operating costs in the quarter rose around 14.3% year over year to roughly $1,647.1 million.
Net sales of $1,746.6 million in the second quarter rose around 12% year over year, topping the Zacks Consensus Estimate of $1,737 million.
AK Steel Holding Corporation Price, Consensus and EPS Surprise
Pricing and Shipments
Flat-rolled steel shipments in the second quarter were up around 0.4% year over year to 1,439,800 tons. Average selling price per ton for flat-rolled steel rose 6% to $1,101.
Financials
AK Steel exited second-quarter 2018 with cash and cash equivalents of $46 million compared with $136.3 million in prior-year quarter. The company had $908.5 million available under its revolving credit facility at the end of the quarter under review.
The company’s long-term debt rose roughly 21% year over year to $2,036.6 million.
Cash flow from operating activities was $187.4 million in the first half compared with $203.2 million a year ago.
Guidance
The company expects market conditions to remain strong in the third quarter. For the quarter, AK Steel expects flat-rolled shipments to be 5% higher from the second quarter. It anticipates average selling price per flat-rolled ton to be $1,105 in the third quarter. The company also anticipates an improvement in pricing and shipment to be, in part, offset by the outage at one of its temper mills. As a result, it expects margins to improve around 50 basis points from the second quarter of 2018.
Price Performance
Shares of AK Steel have lost 2.7% in the past six months, modestly outperforming the industry’s 3.6% decline.
Zacks Rank & Other Stocks to Consider
AK Steel currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the basic materials space are BHP Billiton Limited (BHP - Free Report) , Olympic Steel, Inc. (ZEUS - Free Report) and Steel Dynamics Inc. (STLD - Free Report) . All three stocks carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BHP Billiton has an expected long-term earnings growth rate of 5.3%. Its shares have gained 27% in a year’s time.
Olympic Steel has an expected long-term earnings growth rate of 7.5%. Its shares have gained 26.2% over a year.
Steel Dynamics has an expected long-term earnings growth rate of 12%. The stock has rallied 35.3% in the past year.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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