AK Steel (AKS) Q2 Miss Expected; Goldman Maintains Sell

June 17, 2013 11:09 AM EDT
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Price: $9.52 --0%

Rating Summary:
    8 Buy, 12 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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This morning AK Steel Holding Corporation (NYSE: AKS) said it expects to incur a net loss of between $0.33 and $0.38 per diluted share of common stock for the second quarter of 2013. This was below consensus of which called for a loss of $0.08. In the view of Goldman analyst Sal Tharani, the miss was already priced in.

"AK Steel's guidance was below expectations but we believe the miss was widely expected as steel prices during the quarter came under pressure," said Tharani. "However, the company's EPS guidance for the quarter implied significantly higher than expected operating costs, as the $20mn in maintenance outage costs was already included in estimates. Excluding the impact of maintenance, we estimate gross profit per ton will decline by 13% sequentially, driving the sequential decline in earnings."

Goldman Sachs has a Sell rating on AK Steel with a price target of $2.60. Analysts think steel prices will remain low for the remainder of the year and see limited demand upside in key end markets.

For an analyst ratings summary and ratings history on AK Steel (NYSE: AKS) click here. For more ratings news on AK Steel click here.

Shares of AK Steel closed at $3.57 yesterday.

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