Cliffs Natural Resources Crushes Earnings Estimates
Cliffs Natural Resources (NYS: CLF) reported earnings yesterday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Cliffs Natural Resources missed estimates on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Cliffs Natural Resources chalked up revenue of $1.26 billion. The 13 analysts polled by S&P Capital IQ predicted a top line of $1.29 billion on the same basis. GAAP reported sales were 6.9% higher than the prior-year quarter's $1.18 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $2.63. The 19 earnings estimates compiled by S&P Capital IQ anticipated $1.10 per share. GAAP EPS of $2.63 for Q1 were 15% lower than the prior-year quarter's $3.11 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 24%, 2,200 basis points worse than the prior-year quarter. Operating margin was 18.3%, 2,290 basis points worse than the prior-year quarter. Net margin was 29.7%, 610 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.82 billion. On the bottom line, the average EPS estimate is $2.25.
Next year's average estimate for revenue is $7.29 billion. The average EPS estimate is $9.20.
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 $88.39.
Is Cliffs Natural Resources the right metals stock for you? Find out the best way to profit from inflation and gold with a little-known company we profile in "The Tiny Gold Stock Digging Up Massive Profits." Click here for instant access to this free report.
- Add Cliffs Natural Resources to My Watchlist.
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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.