AK Steel Holding Corporation (NYSE:AKS) Shares Suffer Despite 3rd Quarter Results

AK Steel Holding Corporation (NYSE:AKS) posted its third quarter earning sheets. The EPS stood at 0.05 dollars while the revenue scored at 1.59 billion dollars. AK Steel Holding Corporation (NYSE:AKS) didn’t manage to beat analysts’ estimates, falling short. The company was expected to make an EPS of 0.09 dollars with revenue of 1.49 billion dollars. The only good thing in these numbers is the fact that AK Steel Holding Corporation (NYSE:AKS) slipped past by the expected revenue slightly. But how long can that last?

Last year in the same quarter, the company managed to get 0.23 in EPS while it accumulated 1.33 in revenue. Good news for the investors would be that the quarter concluded with AK Steel Holding Corporation (NYSE:AKS) still holding liquid assets worth 912 million dollars. The company didn’t provide any details regarding the guidance for the next quarter but the analysts’ estimates tell us that 0.10 dollars will be made as far as EPS is concerned while revenue will be around 1.73 billion dollars.

Investors would be happy to know that the company’s losses have decreased however. In the third quarter AK Steel Holding Corporation (NYSE:AKS) reported losses of 7.2 million dollars as compared to the 31.7 million dollar losses made in the previous year in the same quarter. AK Steel Holding Corporation (NYSE:AKS) made 1.59 billion dollars by shipping 1.46 million tons steel as compared to the 1.24 million ton shipped in the previous year, which was worth 1.33 billion dollars.

AK Steel Holding Corporation (NYSE:AKS) acquired Dearborn in September. Dearborn’s acquisition will enable the company to serve its customers in a better way, also modernized equipment and other related facilities will definitely come in handy, especially for the long term. Shares of AK Steel Holding Corporation (NYSE:AKS) were down by more than 15 percent on Tuesday’s trading, even though the third quarter earnings were recently announced.

It was generally expected that the unveiling of third quarter earnings would restore faith of investors, but the turnout was entirely different. Now AK Steel Holding Corporation (NYSE:AKS) has to deal with nervous investors as well as attracting new investors in the market. AK Steel Holding Corporation (NYSE:AKS)’s CEO was singing an entirely different tune. He claimed that the executives were happy with what AK Steel Holding Corporation (NYSE:AKS) made in the past quarter.

Perhaps he was referring to the company’s trend of posting its adjusted net income consistently, though we don’t know how that is going to make any difference to the waning profits. It’s about time AK Steel Holding Corporation (NYSE:AKS) formulated a strategy to put its revenue and profits on an even keel. It would also help the company if it boosts up its profit percentage. The company’s share price is already dwindling on the market, it’s high time for AK Steel Holding Corporation (NYSE:AKS) to pull together its resources to construct a robust infrastructure that assures the companys’ long term investors.

 

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