This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

[video] AK Steel Surprises With Better-than-Expected Outlook

The video this transcript is based on appeared on December 19.

NEW YORK   (TheStreet) -- Shares of AK Steel  (AKS) are surging after reporting a better-than-expected fourth-quarter earnings outlook on Wednesday.  The steelmaker surprised Wall Street by predicting fourth-quarter earnings per share in the range of 2 cents to 6 cents -- when analysts had expected the company to predict a loss of 3 cents a share.  AK Steel is attributing its higher expectations to rising shipments and stronger demand, as well as its recovery from a blast furnace outage that affected its facility in Middletown, Ohio.

VIDEO TRANSCRIPT:

Shares of AK Steel are surging after reporting a better-than-expected fourth-quarter earnings outlook on Wednesday.

The steelmaker predicted fourth-quarter earnings per share in the range of 2 cents to 6 cents, excluding items -- beating analysts' expectations for a loss of 3 cents a share.

AK Steel said it expects shipments to rise 13% in the fourth quarter from the prior period -- totaling 1.4 million tons.  The company said it's seen stronger demand in the fourth quarter compared to the third, especially in carbon sales to the spot market.  Also boosting its outlook -- AK Steel's recovery from a blast furnace outage that affected its facility in Middletown, Ohio.  

That outage will cost the company about a $5 million expense in the fourth quarter, on top of a $2 million non-cash income tax expense it expects to record for the period.  However, AK Steel said it expects to incur lower production costs in the fourth quarter on declining prices of iron ore pellets.

At last check, shares were climbing about 8.4% to $6.85.  In New York, I'm Brittany Umar for TheStreet.

Written by Brittany Umar in New York.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $122.37 -0.50%
FB $95.28 -1.80%
GOOG $633.00 0.17%
TSLA $266.88 1.20%
YHOO $37.48 -0.50%

Markets

Chart of I:DJI
DOW 17,745.98 -5.41 -0.03%
S&P 500 2,109.00 +0.43 0.02%
NASDAQ 5,128.7850 +17.0520 0.33%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs