Big Q3 Loss at AK Steel (AKS) Not Enough to Break Bullish Spirits
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Get Alerts AKS Hot Sheet
Price: $3.47 -1.98%
Revenue Growth %: -9.3%
Financial Fact:
Depreciation: 48.6M
Today's EPS Names:
CEDU, CHC, CIDM, More
Revenue Growth %: -9.3%
Financial Fact:
Depreciation: 48.6M
Today's EPS Names:
CEDU, CHC, CIDM, More
Trade AKS Now!
Shares of AK Steel (NYSE: AKS) were whipsawed after the company updated its third quarter guidance. This was a planned announcement and updates ongoing factors affecting business.
Losses for the 3rd quarter are expected to be 60 and 65 cents per share, in part due to $29 million in planned expenses associated with a planned blast furnace outage at the company's Ashland Works. Additionally the company plans for a 26 cents per share tax value allowance. The average analyst estimates for the 3rd quarter is for a loss of 20 cents.
AK also said that it expects the average selling price in the 3rd quarter to be 7 percent lower than in the second quarter due to lower spot prices, reduced surcharges, and lower raw material costs.
In the second quarter, the company announced that it had elected to suspend its dividend in order to save the company about $22 million in capital needed for the business. This had AKS investors on edge, and as a result trading has been choppy.
After trading lower pre-market, shares of AKS swung back into the green early in the session and are now higher by 3.3 percent.
Despite the bad news, AKS peers including United States Steel Corp. (NYSE: X), Nucor Corporation (NYSE: NUE), Reliance Steel & Aluminum Co (NYSE: RS), ArcelorMittal (NYSE: MT), and Steel Dynamics (Nasdaq: STLD) are all moving higher today.
Last week steel stocks got a boost when China announced it had approved $157 billion in government projects. This week stocks are reacting to Fed efforts to stimulate the economy in the U.S., causing investors to grow increasingly bullish on the sector.
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Losses for the 3rd quarter are expected to be 60 and 65 cents per share, in part due to $29 million in planned expenses associated with a planned blast furnace outage at the company's Ashland Works. Additionally the company plans for a 26 cents per share tax value allowance. The average analyst estimates for the 3rd quarter is for a loss of 20 cents.
AK also said that it expects the average selling price in the 3rd quarter to be 7 percent lower than in the second quarter due to lower spot prices, reduced surcharges, and lower raw material costs.
In the second quarter, the company announced that it had elected to suspend its dividend in order to save the company about $22 million in capital needed for the business. This had AKS investors on edge, and as a result trading has been choppy.
After trading lower pre-market, shares of AKS swung back into the green early in the session and are now higher by 3.3 percent.
Despite the bad news, AKS peers including United States Steel Corp. (NYSE: X), Nucor Corporation (NYSE: NUE), Reliance Steel & Aluminum Co (NYSE: RS), ArcelorMittal (NYSE: MT), and Steel Dynamics (Nasdaq: STLD) are all moving higher today.
Last week steel stocks got a boost when China announced it had approved $157 billion in government projects. This week stocks are reacting to Fed efforts to stimulate the economy in the U.S., causing investors to grow increasingly bullish on the sector.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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