Cliffs Natural (CLF) Misses Estimates in Q2 - Tale of the Tape
Cliffs Natural Resources Inc. (CLF) is a leading mining and natural resources company. The company is a major supplier of iron ore pellets to the North American steel industry. Cliffs also produces low-volatile metallurgical coal in the U.S.
Cliffs sees continued economic growth in the U.S. to support domestic steel production and demand for steelmaking raw materials in 2015. Steel demand in the U.S. is expected to be backed by strength in the automotive sector and a recovering housing market.
Cliffs is boosting its mining and transportation capacity globally. It has also employed a global exploration program, which is aimed at identifying and capturing new world-class projects.
Let’s have a quick look at this Ohio-based company’s second-quarter release.
Estimate Trend & Surprise History
Investors should note that Cliffs has beaten the Zacks Consensus Estimate in all of the trailing 4 quarters with an average beat of around 271.18%.
Earnings
Cliffs delivered adjusted loss from continuing operations of 21 cents per share, wider than the Zacks Consensus Estimate of a loss of 11 cents.
Revenues
Cliffs reported revenues of $498.1 million. That missed the Zacks Consensus Estimate of $610 million.
Key Stats/Developments to Note
The company cut its full-year sales and production volume guidance for the U.S. iron ore business. Management is also focused on improving the cost structure, which will bear fruit in future reporting periods. The company expects improved industry operating conditions and profitability in the second half of 2015 as actions have been taken to combat the influence of unfairly-traded steel in the U.S.
Zacks Rank
Currently, Cliffs has a Zacks Rank #2 (Strong Buy), but that could change following its earnings report which was just released.
Market Reaction
Cliffs’ shares were up around 6.7% in the pre-market trading. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on Cliffs’ earnings report!
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CLIFFS NATURAL (CLF): Free Stock Analysis Report
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