AK Steel’s 1Q17 earnings
AK Steel (AKS) released its 1Q17 earnings on April 25 and reported net income of $62.5 million during the quarter. Its net income translates into EPS (earnings per share) of $0.19. The company posted a net loss of $13.6 million in the same quarter last year. AK Steel’s 1Q17 profitability was the highest first quarter profit since 2008. The company managed to beat consensus earnings estimates during the quarter. Despite solid earnings growth, AK Steel’s 1Q17 earnings didn’t boost market sentiments.
AK Steel closed at $6.40 on April 25—it lost 10.1% from the previous day’s closing. Now, the stock is trading with a year-to-date loss of 37.3%. The stock is among the worst performing steel plays this year. AK Steel more than quadrupled last year after President Trump’s election win boosted steel stocks (XME).
1Q17 earnings season
We’re in middle of the 1Q17 earnings season. Looking at other steel companies (X), Nucor (NUE) and Steel Dynamics (STLD) posted a sharp increase in their 1Q17 profitability. Steel Dynamics’ EBITDA (earnings before interest, tax, depreciation, and amortization) rose to $421 million in 1Q17—compared to $214 million in the sequential quarter. Nucor reported EBITDA of $773 million in 1Q17. The company posted adjusted EBITDA of $425 million in 4Q16 and $347 million in 1Q16.
In this series, we’ll explore AK Steel’s 1Q17 earnings in detail. We’ll also cover key points from the company’s 1Q17 earnings conference call. In the next part, we’ll look at AK Steel’s revenues in 1Q17.