NEW YORK (TheStreet) -- AK Steel (AKS) stock is trading lower on Friday after issuing second-quarter guidance below analysts' estimates. The company anticipates an adjusted net loss between 2 cents and 6 cents a share.
"Second quarter results will be negatively impacted by the lingering effects of the extreme winter weather conditions and by the adverse impact of mark-to-market hedging losses, which the company expects will be substantially offset in the second half of 2014 by lower costs for commodities or by gains in its hedging positions," the company said in a statement.
By midmorning, shares had dropped 1.1% to $7.36. Trading volume of 2.9 million shares was just under half its three-month daily average.
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Separately, TheStreet Ratings team rates AK STEEL HOLDING CORP as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate AK STEEL HOLDING CORP (AKS) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows: