On May 19, 2017, Cisco Systems (CSCO) continued to be the largest global player by market capitalization in the cybersecurity space.
FireEye stock has risen nearly 31.0% in the last two months. Its fiscal 1Q17 results and its guidance exceeded analysts’ expectations.
According to Profit Confidential, FireEye tops the list of cybersecurity stocks to watch in 2017.
On May 19, 2017, FireEye was trading 7.0% above its 20-day moving average of $14 and 15.0% above its 50-day moving average of $13.
Because of FireEye’s exposure in Europe and Asia-Pacific, it could be the prime beneficiary of increased cybersecurity spending.
Analysts are primarily (61.0%) recommending a “buy” for Cisco stock as of May 19, 2017.
Currently, Cisco’s forward EV-to-EBITDA multiple is 7.2x. Symantec’s (SYMC) is ~9.6x, and Palo Alto Networks’ (PANW) is ~24.8x.
AK Steel (AKS) is trading at an EV-to-EBITDA multiple of 6.6x based on its fiscal 2017 expected EBITDA. AK Steel reduced its spot exposure.
ArcelorMittal’s net debt rose in 1Q17 due to higher working capital investment. The company’s net debt-to-EBITDA is 1.8x as of March 31, 2017.
U.S. Steel Corporation (X) posted negative free cash flows of $182 million in 1Q17. The company attributed negative cash flows to higher working capital.
Analysts see a big spike in U.S. Steel Corporation’s 2Q17 EBITDA. The company is expected to post an adjusted EBITDA of $294 million in 2Q17.
AK Steel (AKS) generated adjusted EBITDA of $143 million in 1Q17—compared to $151 million in 4Q16 and $81 million in 1Q16.
Contract pricing could be a tailwind for steel companies in the coming quarters especially if spot steel prices come under more pressure.
ArcelorMittal reported an average selling price of $649 per metric ton in 1Q17—compared to $589 per metric ton in 4Q16 and $520 per metric ton in 1Q16.
Looking at U.S. Steel Corporation’s 2017 guidance, the company expects its 2017 US flat-rolled shipments to be 10 million tons.
AK Steel expects its 2Q17 steel shipments to be flat compared to 1Q17. The company expects its automotive shipments to be flat YoY in 2017.
U.S. Steel Corporation shipped 3.65 million tons of steel in 1Q17. It shipped 3.76 million tons of steel in 4Q16 and 3.59 million tons of steel in 1Q16.
The 1Q17 earnings season is nearly over. Most steel companies have reported their earnings. It has been a mixed earnings season for steel companies (XME).
In 1Q17, Amgen’s (AMGN) Nplate generated revenues of ~$154 million, which reflected a year-over-year growth rate of 9%.
In 2016, Amgen’s (AMGN) Neulasta generated revenues close to $4.6 billion, which was a slight drop from its 2015 net sales of ~$4.7 billion.