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What You Should Expect from AK Steel’s Q1 Earnings

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AK Steel’s Q4 earnings

AK Steel (AKS) is scheduled to release its first-quarter earnings on April 29 after the markets close. The company is to hold its earnings call on April 30. So far, it’s been a mixed earnings season for steel investors. While Steel Dynamics (STLD) missed earnings estimates, Nucor (NUE) posted better-than-expected earnings. U.S. Steel (X) and ArcelorMittal (MT) are expected to release their quarterly earnings on May 2 and May 9, respectively.

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Analysts polled by Thomson Reuters expect AK Steel to post adjusted EPS of $0.13 in the first quarter. The company posted adjusted EPS of $0.16 in the fourth quarter of 2017 and $0.09 in the first quarter of 2018. Before our detailed analysis of AK Steel’s first-quarter earnings estimates, let’s recap the fourth-quarter earnings.

Fourth-quarter earnings

AK Steel posted adjusted EPS of $0.16 in the fourth quarter of 2018, compared to EPS of -$0.06 in the fourth quarter of 2017. AK Steel’s fourth quarter and full-year-2018 earnings were at a decade high. While the fourth-quarter earnings were better than expected, the company missed earnings estimates over the preceding two quarters.

AK Steel saw a selling spree last year and lost more than 60% of its market capitalization. However, it has recouped some of its losses and is up 9.8% year-to-date. Cleveland-Cliffs (CLF) has outperformed US steel producers this year with year-to-date gains of 25%. The SPDR S&P Metals and Mining ETF (XME) has gained 12.6% so far in 2019.

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