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Cliffs Natural (CLF) Posts Loss in Q1, Revenues Beat

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Cliffs Natural Resources Inc. (CLF - Free Report) is a leading mining and natural resources company. Cliffs is the largest producer of iron ore pellets in North America.

Cliffs is focused on deleveraging its balance sheet, improving the cost structure and managing cash efficiently. The company is expected to gain from ArcelorMittal and U.S. Steel Canada deals and an expected rise in steel demand in the U.S.

Let’s have a quick look at the company’s first-quarter 2017 release.

Estimate Trend & Surprise History

Investors should note that the earnings estimate for Cliffs for the first quarter has seen a downtrend over the past month. Cliffs has beaten the Zacks Consensus Estimate in 3 of the trailing 4 quarters, while missing in one, with an average beat of around 57.33%.

Earnings

Cliffs’ net loss came in at 11 cents per share in the first quarter, missing the Zacks Consensus Estimate of earnings of 16 cents.

Revenues

Cliffs reported revenues of $461.6 million, beating the Zacks Consensus Estimate of $373 million.

Key Stats/Developments to Note

For 2017, Cliffs expects to generate net income of $380 million. The company projects its full-year selling, general and administrative (SG&A) expenses to be around $100 million, which remains unchanged from previous expectations.

Cliffs expects its 2017 capital expenditures to be $105 million.

Zacks Rank

Currently, Cliffs has a Zacks Rank #3 (Hold), but that could change following its earnings report which was just released.

Market Reaction

Cliffs’ shares were down 5.8% in the pre-market trading following the release. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on Cliffs’ earnings report!

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