AK Steel Holding Corporation (NYSE: AKS)
AK Steel Holding Corporation is having an incredibly strong start to the trading session today. Early this morning, the company released its earnings, blowing away expectations and causing massive pre-market gains. Since the market open, the stock has corrected slightly, but it’s still trading on strong gains. Below, we’ll talk about what we’re seeing from AKS, why, and what we’ll be watching for ahead.
What We’re Seeing From AKS
As mentioned above, AK Steel Holding Corporation is having an incredibly strong start to today’s trading session. In pre-market trading, the stock saw exponential growth. When the opening bell rang, the stock immediately started correcting, giving up some of the pre-market gains. However, it is still trading with strong profits on the day. Currently (9:38), AKS is trading at $9.98 per share after a gain of $0.69 per share, or 7.43%.
Why The Stock Is Up
As is usually the case, as soon as we got the alert from Tradespoon that AKS was making a run for the top, the CNA Finance team started digging to see exactly what was causing the movement. In this particular case, it didn’t take long to dig up the story. The gains revolve around the company’s earnings.
Early this morning, AK Steel Holding Corporation released its earnings report for the fourth quarter. In the report, we learned that both revenue and earnings beat expectations. Revenue and earnings came in at $1.42 billion and $0.25 per share respectively. Analysts were expecting to see revenue come in at $1.41 billion and earnings at $0.09 per share. Obviously, the company has beat expectations on both accounts. In a statement, Roger K. Newport, CEO at AKS, had the following to offer:
“The strategy that we introduced at the beginning of 2016 generated improved results and a stronger AK Steel… Our work to optimize our footprint, relentlessly focus on costs, and reduce exposure to commodity spot markets generated improved margins. By successfully completing several capital market transactions, we were able to significantly strengthen our balance sheet. These actions position us well for the future.”
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on AKS. In the Trump world, there may be many opportunities to come. We’ll keep a close eye on the news and bring it to you as it breaks!
Update – While earnings was overwhelmingly positive and President Trump has made some compelling statements that should be pushing AKS higher, Axiom has released a negative report that affects AKS and the steel industry as a whole. However, at the end of the day, we believe that the sell off is overblown, as there is a strong argument for future growth following such positive news from both the company and the President.
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