AK Steel Holding Beats Estimates Yet Again

AK Steel Holding (NYS: AKS) reported earnings on Jan. 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), AK Steel Holding beat slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew and earnings per share contracted.

Gross margins grew, operating margins dropped, and net margins shrank.

Revenue details
AK Steel Holding logged revenue of $1.5 billion. The 12 analysts polled by S&P Capital IQ expected revenue of $1.5 billion. Sales were 8.5% higher than the prior-year quarter's $1.4 billion.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at -$0.26. The 15 earnings estimates compiled by S&P Capital IQ predicted -$0.39 per share on the same basis. GAAP EPS were -$1.76 for Q4 versus -$0.89 per share for the prior-year quarter.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 3.8%, 260 basis points better than the prior-year quarter. Operating margin was -19.9%, 1,400 basis points worse than the prior-year quarter. Net margin was -12.8%, 570 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.6 billion. On the bottom line, the average EPS estimate is $0.02.

Next year's average estimate for revenue is $6.6 billion. The average EPS estimate is $0.72.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 875 members out of 955 rating the stock outperform, and 80 members rating it underperform. Among 231 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 212 give AK Steel Holding a green thumbs-up, and 19 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AK Steel Holding is outperform, with an average price target of $10.66.

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At the time thisarticle was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.

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