AK Steel Holding Goes Red

Seth Jayson, The Motley Fool
Updated

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

The 10-second takeaway
For the quarter ended March 31 (Q1), AK Steel Holding met expectations on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped to a loss.


Margins dropped across the board.

Revenue details
AK Steel Holding tallied revenue of $1.51 billion. The 14 analysts polled by S&P Capital IQ looked for net sales of $1.51 billion on the same basis. GAAP reported sales were 4.6% lower than the prior-year quarter's $1.58 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.11. The 15 earnings estimates compiled by S&P Capital IQ forecast -$0.12 per share. GAAP EPS were -$0.11 for Q1 against $0.08 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 6.6%, 120 basis points worse than the prior-year quarter. Operating margin was 0.3%, 100 basis points worse than the prior-year quarter. Net margin was -0.8%, 140 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.66 billion. On the bottom line, the average EPS estimate is $0.22.

Next year's average estimate for revenue is $6.45 billion. The average EPS estimate is $0.54.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 864 members out of 949 rating the stock outperform, and 85 members rating it underperform. Among 205 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 187 give AK Steel Holding a green thumbs-up, and 18 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AK Steel Holding is hold, with an average price target of $10.27.

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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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