AK Steel Holding Corporation and United States Steel Corporation Facing Downward Pressure

[End Subhead]
[Start Distributor]
Accesswire 26-Apr-2017 7:30 AM
[End Distributor]
NEW YORK, NY / ACCESSWIRE / April 26, 2017 /With unfairly traded steel product a huge issue for the US steel industry, it's no surprise that both U.S. Steel and AK Steel rallied earlier in the week after President Trump ordered an executive order to widen the probe against imported steel products. The rally fell short however on Tuesday when both companies fell into the red after their earnings reports, despite AK Steel topping on Q1 street estimates.
RDI Initiates Coverage on:
AK Steel Holding Corporation https://ub.rdinvesting.com/news/?ticker=AKS
United States Steel Corporation https://ub.rdinvesting.com/news/?ticker=X
AK Steel Holding Corp. closed down 10.11% on Tuesday, despite an impressive first quarter earnings report. The company reported first-quarter net income of $62.5 million (19 cents per share), after reporting a loss in the same period a year earlier. Wall Street had been expecting earnings of 15 cents per share, according to the average estimate of eight analysts surveyed by Zacks Investment Research. The steel producer posted revenue of $1.53 billion in the period which also topped expectations. Three analysts surveyed by Zacks had expected $1.48 billion. "Our first quarter performance reflected the ongoing benefits of our margin enhancement activities, strong operational focus and an improved pricing environment," said Roger K. Newport, Chief Executive Officer of AK Steel. "We also made great progress in the quarter on new product development, as we continue to focus on introducing innovative products." The stock has gained 29% in the last year but have slipped 37% YTD.
Access RDI's AK Steel Holding Research Report at: https://ub.rdinvesting.com/news/?ticker=AKS
United States Steel Corporation traded fairy flat on Tuesday but started to plunge in after-hours trading when the Pittsburgh based steel company reported a loss of $180 million in its first quarter. The company reported a loss of $1.03 per share. Losses, adjusted for non-recurring costs, came in 83 cents per share. Wall Street was not pleased as the average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of 30 cents per share. Revenue at $2.73 billion in the period was also well below what three analysts surveyed by Zacks expected at $2.92 billion. At Tuesday's closing price of $31.11, shares had been up 70% in the last 12 months. By 4:38PM EDT, shares had fallen over 16%.
Access RDI's United States Steel Research Report at: https://ub.rdinvesting.com/news/?ticker=X
Our Actionable Research on AK Steel Holding Corporation (NYSE: AKS) and United States Steel Corporation (NYSE: X)can be downloaded free of charge at Research Driven Investing.
Research Driven Investing
We are committed to providing relevant and actionable information for the self-directed investor. Our research is reputed for being a leader in trusted, in-depth analysis vital for informed strategic trading decisions. The nimble investor can leverage our analysis and collective expertise to execute a disciplined approach to stock selection.
RDInvesting has not been compensated; directly or indirectly; for producing or publishing this document.
Disclaimer: This article is written by an independent contributor of RDInvesting.com and reviewed by Nadia Noorani, CFA charter holder. RDInvesting.com is neither a registered broker dealer nor a registered investment advisor. For more information please read our full disclaimer at www.rdinvesting.com/disclaimer.
CONTACT
For any questions, inquiries, or comments reach out to us directly at:
Address:
Research Driven Investing, Unit #901 511 Avenue of the Americas, New York, NY, 10011
Email:
contact@rdinvesting.com
CFA and Chartered Financial Analyst are registered trademarks owned by CFA Institute.
SOURCE: RDInvesting.com