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Can AK Steel Pull Out a Surprise in Its 4Q15 Earnings?

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AK Steel’s 4Q15 earnings

Previously, we’ve looked at analyst estimates for Steel Dynamics’ (STLD) 4Q15 earnings. In this part of the series, we’ll explore what Wall Street expects from AK Steel’s 4Q15 earnings. AK Steel (AKS) is expected to release its 4Q15 financial results on January 26.

AK Steel had posted a surprise profit in 3Q15 while analysts were expecting the company to post a loss in the quarter. Better-than-expected 3Q15 earnings sent AK Steel’s stock soaring after the earnings release.

AK Steel has seen upward price action after the last four earning releases. The stock generally tends to be quite volatile in the earnings season. Let’s see what analysts are expecting from AK Steel’s 4Q15 earnings.

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Analyst estimates

According to the data compiled by Bloomberg, analysts expect AK Steel to post adjusted earnings per share (or EPS) of $0.065 per share in 4Q15. In its 4Q15 guidance, AK Steel said that it expects to post a loss per share of $0.33–$0.38 in the quarter.

AK Steel expects to record impairment charges of $0.42 in 4Q15, related to the idling of its Ashland Works facility and discontinued insurance operations. After adjusting for these one-time charges, the company expects to post earnings per share between $0.04–$0.09 in 4Q15.

Can AK Steel surprise?

AK Steel has delivered better-than-expected results in three out of the last four quarters, as shown in the graph above. But, can AK Steel deliver better than expected results in 4Q15 as well? We’ll explore this in the next part of this series.

Investors who want to avoid the hassles of picking individual stocks can also consider the SPDR S&P Metals and Mining ETF (XME). Together, Nucor (NUE) and Commercial Metals Company (CMC) form 10.1 % of XME’s portfolio.

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