Cliffs Natural Resources Increases Sales but Misses Estimates on Earnings
Cliffs Natural Resources (NYS: CLF) reported earnings on Feb. 15. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Cliffs Natural Resources beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Cliffs Natural Resources logged revenue of $1.66 billion. The 12 analysts polled by S&P Capital IQ foresaw net sales of $1.61 billion on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $1.42 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $1.42. The 18 earnings estimates compiled by S&P Capital IQ averaged $1.60 per share on the same basis. GAAP EPS of $1.39 for Q4 were 51% lower than the prior-year quarter's $2.82 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 29.7%, 600 basis points worse than the prior-year quarter. Operating margin was 23.0%, 670 basis points worse than the prior-year quarter. Net margin was 11.9%, 1,510 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.36 billion. On the bottom line, the average EPS estimate is $1.30.
Next year's average estimate for revenue is $7.43 billion. The average EPS estimate is $9.85.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cliffs Natural Resources is outperform, with an average price target of $103.19.
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At the time this article 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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