AK Steel Holding Corporation reported net income of $28.7 million or 9 cents per share in the first quarter of 2018, down 66% from the net income of $84.4 million or 26 cents recorded in the prior-year quarter. Earnings, however, surpassed the Zacks Consensus Estimate of 3 cents.
Total operating costs in the quarter rose around 13.6% year over year to roughly $1,595.3 million.
Net sales of $1,658.9 million for the first quarter rose 8.2% year over year, which also topped the Zacks Consensus Estimate of $1,549 million.
AK Steel Holding Corporation Price, Consensus and EPS Surprise
Flat-rolled steel shipments for the first quarter were down around 1.7% year over year to 1,430,900 tons. Average selling price per ton for flat-rolled steel rose 4% year over year to $1,045.
Financials
AK Steel exited first-quarter 2018 with cash and cash equivalents of $44.5 million compared with 185.7 million in prior-year quarter. The company had $819.8 million available under its revolving credit facility at the end of the first quarter.
The company’s long-term debt rose roughly 24.9% year over year to $2,103.3 million.
Cash flows from operating activities were $65.6 million for the reported quarter compared with $36.3 million a year ago.
Guidance
The company expects market conditions to strengthen in the second quarter on a sequential comparison basis. For second-quarter 2018, AK Steel expects flat-rolled shipments to be roughly 5% to 7% higher than the first quarter. It anticipates average selling price per flat-rolled ton to be about $1,075 in the second quarter. The company sees improvement in pricing and volumes, as a result of which, adjusted EBITDA margin is expected to improve by 1.5 to 2 percentage points sequentially in the second quarter of 2018.
Price Performance
Shares of AK Steel have moved up 2.4% in the last six months, underperforming the
industry’s 16.3% growth.
Zacks Rank & Stocks to Consider
AK Steel currently carries a Zacks Rank #3 (Hold).
Kronos has an expected long-term earnings growth rate of 5%. Its shares have gained 33.4% over a year.
Westlake Chemical has an expected long-term earnings growth rate of 12.18%. Its shares have gained 70.15% over a year.
Steel Dynamics has an expected long-term earnings growth rate of 12%. Its shares have moved up 23.65% over a year.
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AK Steel's (AKS) Earnings and Revenues Beat Estimates in Q1
AK Steel Holding Corporation Price, Consensus and EPS Surprise | AK Steel Holding Corporation Quote
Pricing and Shipments