|Bid||4.71 x 900|
|Ask||4.76 x 42300|
|Day's Range||4.68 - 4.87|
|52 Week Range||4.00 - 6.80|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 25, 2018|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||5.34|
So far in this series, we’ve discussed Nucor (NUE), Steel Dynamics (STLD), and U.S. Steel Corporation’s (X) third-quarter earnings guidance. In this part, we’ll see how things look for AK Steel (AKS) in the third quarter and beyond. AK Steel has underperformed the broader steel space (XME) in 2018. The stock saw a selling spree after its first and second-quarter earnings release. In the second quarter, AK Steel missed the consensus estimates and its third-quarter guidance also spooked the markets. Let’s see what analysts project for the company’s third-quarter earnings.
Have President Trump’s Tactics Started to Yield Results? On September 17, President Trump imposed 10% tariffs on $200 billion worth of goods from China. The tariffs will increase to 25% by the end of 2018.
U.S. Steel Corporation (X) is having a dismal run in 2018. The stock has lost 15.3% year-to-date based on the closing prices on September 18. AK Steel (AKS) has lost 17.3% YTD, while Nucor (NUE) has risen 2.3%. Cleveland-Cliffs (CLF) has outperformed US steel stocks (XME) in 2018 with gains of 69.2%. Let’s see what could drive U.S. Steel Corporation’s performance in 2019.
How far off is AK Steel Holding Corporation (NYSE:AKS) from its intrinsic value? Using the most recent financial data, I am going to take a look at whether the stockRead More...
Nucor (NUE), the largest US-based steel producer, posted its highest second-quarter earnings ever in the second quarter of 2018. Steel Dynamics (STLD) also posted record earnings in the second quarter. The Section 232 tariffs lifted US steel prices to multiyear highs. ArcelorMittal (MT) only gets a quarter of its revenues from NAFTA. ArcelorMittal also posted its highest earnings in seven years. However, U.S. Steel Corporation (X) and AK Steel’s (AKS) earnings have lagged other steel companies in 2018.
Previously in this series, we discussed Nucor (NUE) and Steel Dynamics’ (STLD) third-quarter earnings guidance. In this part, we’ll discuss U.S. Steel Corporation’s (X) third-quarter earnings estimates compared to the company’s guidance.
In the previous part, we discussed Nucor’s (NUE) third-quarter earnings guidance. In this part, we’ll discuss Steel Dynamics’ third-quarter guidance. The guidance was released after the markets closed on September 17.
Last week, Nucor (NUE), the largest US-based steel producer, released its third-quarter guidance. The company expects to post an EPS of $2.35–$2.40 in the quarter. Nucor posted an EPS of $2.13 in the second quarter and $0.79 in the third quarter of 2017. Nucor’s third-quarter earnings guidance was in line with analysts’ estimates. Previously, Nucor posted better-than-expected guidance in the second quarter.
Now, we’re approaching the end of the third quarter. Nucor (NUE) released its third-quarter earnings guidance on September 14, while Steel Dynamics (STLD) released its earnings guidance on September 17. In this series, we’ll discuss Nucor and Steel Dynamics’ third-quarter guidance. We’ll also analyze the third-quarter guidance provided by other steel companies during their second-quarter earnings call. We’ll discuss steel companies’ outlook.
AK Steel (AKS) said today that it plans to release its third quarter 2018 financial results following the close of trading on the New York Stock Exchange on Thursday, October 25, 2018. AK Steel will also provide live listening access on the Internet to its earnings conference call to be held at 8:30 a.m. Eastern Time on Friday, October 26, 2018. Access to the webcast will be available from the home page of the company’s website at www.aksteel.com. Presentation slides will also be available on the webcast link and under the Investor Presentations section on the website. The webcast will be archived on the company’s website following the call for three months and will be accessible from the Investor News and Events section. AK Steel is a leading producer of flat-rolled carbon, stainless and electrical steel products, primarily for the automotive, infrastructure and manufacturing, including electrical power, and distributors and converters markets. Through its subsidiaries, the company also provides customer solutions with carbon and stainless steel tubing products, die design and tooling, and hot- and cold-stamped components. Headquartered in West Chester, Ohio (Greater Cincinnati), the company has approximately 9,200 employees at manufacturing operations in the United States, Canada and Mexico, and facilities in Western Europe. Additional information about AK Steel is available at www.aksteel.com.
Earlier this year, President Trump imposed tariffs on US steel and aluminum imports. US steel companies like U.S. Steel Corporation (X) and AK Steel (AKS) have blamed more imports for their woes. Notably, China’s share in the global steel and aluminum markets has grown multi-fold.
As noted in the previous article, steel companies’ valuations look attractive based on forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiples. However, these multiples are based on analysts’ earnings estimates, so it is prudent to read the multiples in conjunction with earnings estimates.
A look at the shareholders of AK Steel Holding Corporation (NYSE:AKS) can tell us which group is most powerful. Insiders often own a large chunk of younger, smaller, companies whileRead More...
This month we’ve seen share buyback announcements by both Nucor (NUE) and Steel Dynamics (STLD). Share buybacks are a tool for management to return cash to shareholders. Generally, companies pursue share buybacks when they have surplus cash or they find their stocks undervalued. Steel companies’ cash flows have certainly improved amid higher steel prices. But do their valuations look tempting?
China (FXI) is the world’s largest steel producer and consumer. The country’s steel overcapacity and exports have been blamed for depressing global steel prices. However, Chinese steel exports have come down sharply from their 2015 highs. In August, China exported 5.8 million metric tons of steel products, a yearly fall of 9.8%. In the first eight months of 2018, Chinese steel exports have fallen 13.3% to 47.2 million metric tons.
President Trump has left the door open for exemptions from Section 232 tariffs. The exemptions would be on a product level as well as a country level. So far, countries like South Korea, Brazil, and Argentina have managed to see exemptions from Section 232 tariffs. The uncertainty about Section 232 exemptions is one reason why investors have shied away from steel stocks. In this article, we’ll see how Section 232 exemptions could impact US steel prices.
In this article, we’ll look at some of the risks that the US steel industry faces towards the end of 2018. We’ll look at global as well as domestic challenges.
According to AISI (American Iron and Steel Institute) data, US steel production rose 9.8% YoY in the week ending September 8. On a year-to-date basis, US steel production has risen 4.1% compared to the same period in 2017.
While several industries have been crying foul over President Trump’s trade policies, the US steel industry has been among the biggest benefactors of these trade policies. Earlier this year, Trump imposed a 25% tariff on US steel imports, triggering a wave of joy in US steel companies. To be sure, we’ve started to see the impact of these tariffs on the US steel industry. US steel production has gained traction, while imports have fallen on a yearly basis this year.
Steel stocks, including U.S. Steel Corporation (X), ArcelorMittal (MT), and AK Steel (AKS), are trading with double-digit losses this year. But after a rather dismal 2018, steel stocks could be at a tipping point.
As we saw in the previous part, AK Steel’s (AKS) 2018 price action has lagged other steel companies, including U.S. Steel Corporation (X), Nucor (NUE), and ArcelorMittal (MT). Now let’s look at some of AK Steel’s near-term drivers.
Earlier this year, President Trump imposed Section 232 tariffs on US steel and aluminum imports. September marks the sixth month since tariffs came into effect. The tariffs have helped lift US steel production and curb imports. On a year-to-date basis, US steel imports have fallen 10.3% year-over-year in the first seven months of 2018. Steel imports from China have also fallen. In the first six months of 2018, China exported 0.34 million metric tons of steel to the US, which is ~2.1% of the total US steel imports during this period. US steel and iron ore producers like U.S. ...
Steel companies’ cash flows have improved this year amid higher steel prices and margin expansion. For instance, Nucor’s (NUE) free cash flow rose from $12 million in the second quarter of 2017 to $553 million in the second quarter of 2018.
Today, Jefferies analyst Seth Rosenelf raised the target price for Cleveland-Cliffs (CLF) from $11 to $13 while maintaining a “buy” rating on the stock. Cleveland-Cliffs stock has seen a turn in fortunes, as far as analyst sentiment is concerned, since March.