Wall Street Journal Cheat Sheet: Cliffs Natural Resources Earnings: Here's Why Investors Are Excited Now
By Derek Hoffman
July 25, 2013
Cliffs Natural Resources Inc. (NYSE:CLF) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 3.65%.
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Cliffs Natural Resources Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 49.69% to $0.82 in the quarter versus EPS of $1.63 in the year-earlier quarter.
Revenue: Decreased 8.46% to $1.49 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Cliffs Natural Resources Inc. reported adjusted EPS income of $0.82 per share. By that measure, the company beat the mean analyst estimate of $0.61. It beat the average revenue estimate of $1.41 billion.
Quoting Management: Joseph Carrabba, Cliffs’ president and chief executive officer, said, “During the quarter, I’m pleased to report we paid down debt by $110 million and made meaningful progress in lowering our SG&A and exploration expenses. Our U.S. Iron Ore, Asia Pacific Iron Ore, and North American Coal segments once again delivered strong operational performances. Looking at the remainder of the year, we also have a positive outlook for these segments. In Eastern Canadian Iron Ore, the team remains steadfast in their efforts to improve the stability of the operations.”
Revenue increased 30.51% from $1.14 billion in the previous quarter. EPS increased 36.67% from $0.60 in the previous quarter.
Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.44 to a profit $0.50. For the current year, the average estimate has moved up from a profit