NEW YORK (TheStreet) -- Shares of AK Steel (AKS) continue to rise, up 5.48% to $6.35 in early afternoon trading Friday, after the steel manufacturer announced its fourth-quarter guidance on Thursday that beat analysts' expectations.
AK Steel said it anticipates earnings in the range of 5 cents to 10 cents a share for the fourth quarter even after factoring in $31 million in costs linked to a scheduled blast furnace outage at its Ashland Works plant. Analysts polled by Thomson Reuters expect earnings of 4 cents a share for the quarter.
The company also announced it expects steel shipments to surge 37% to approximately 2 million tons in the fourth quarter from approximately 1.46 million tons in the third quarter. AK Steel attributed the anticipated increase to acquisitions and high demand from the automobile industry.
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AK Steel also said it should benefit from lower iron ore, carbon scrap, and energy prices in the fourth quarter.
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 some concerns, 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 poor profit margins and generally disappointing historical performance in the stock itself."