Cliffs Natural's (CLF) Q3 Loss Narrower Than Expected
Cliffs Natural Resources Inc. CLF is a leading mining and natural resources company. Cliffs is the largest producer of iron ore pellets in North America.
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 third-quarter release.
Estimate Trend & Surprise History
Investors should note that Cliffs has beaten the Zacks Consensus Estimate in 3 of the trailing 4 quarters with an average beat of around 226.57%.
Earnings
Cliffs’ adjusted loss of 15 cents per share was narrower than the Zacks Consensus Estimate of a loss of 23 cents.
Revenues
Cliffs reported revenues of $593.2 million. That missed the Zacks Consensus Estimate of $622 million.
Key Stats/Developments to Note
The company delivered considerable cost reductions in all areas of its business. It sees the domestic steel market to improve in 2016 as trade actions mitigate the pressure of imports and drive steel pricing. The company stated that its strong cost position coupled with stronger demand from the mills should drive profitability.
Zacks Rank
Currently, Cliffs has a Zacks Rank #3 (Hold), but that could change following its earnings report which was just released.
Market Reaction
Cliffs’ shares were up around 10% 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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