It’s almost a month since the previous financial report for AK Steel Holding Corporation (NYSE:AKS). Shares have gained almost 6% in that time frame, surpassing the market. However, it remains the question if the recent up trend will continue in the stock’s next financial earnings release, or the stock can see a pullback?
The buzz
AK Steel surpassed earnings projections in 4Q2016, supported by its cost-decline measures. The company’s adjusted earnings of $0.25 a share for 4Q2016 exceled the Zacks Consensus projection of $0.07 per share. On a reported basis, the firm registered a net loss of $62.4 million in the reported quarter compared to a loss of $145.4 million in the year-ago quarter. The report in the fourth quarter comprise one-time items counting charges linked to pension settlement and cancelation of pellet deal with Magnetation LLC.
Total operating expenses in the reported quarter declined almost 9% year over year to almost $1.4 billion. AK Steel posted net sales of $1.418 billion for the quarter, down almost 8% from the comparable quarter, a year ago. Sales came lower than the Zacks Consensus projection of $1.434 billion.
Shipments for the fourth quarter dropped 15% YoY to 1.412 million tons, affected by the firm’s move to lower commodity steel sales to the converters and distributor market and lower shipments to the large automotive industry. The selling price a ton surged 7% YoY to $998 in the quarter on better sales mix and enhanced carbon steel spot pricing.
AK Steel recorded a net loss of $7.8 million compared to a net loss of $509 million in FY2015. Adjusted earnings stood at $0.56 a share for the year. Sales declined almost 12% YoY to $5.88 billion for the year on lower shipments.
AK Steel closed 2016 with cash/cash equivalents of $173.2 million, almost three-fold YoY rise. Long-term debt declined almost 23% YoY to around $1.8 billion.
