Market Overview

KeyBanc Sounds Cautious Note On AK Steel's Q1

Share:
KeyBanc Sounds Cautious Note On AK Steel's Q1

AK Steel Holding Corporation (NYSE: AKS) reported what looked like a good earnings beat Monday, but KeyBanc Capital Markets warned that some extraordinary items and lukewarm guidance may mean the steelmaker isn’t as solid below the surface as the earnings may have implied.

AK Steel announced first-quarter earnings Monday of 23 cents per share vs. the Street’s expected 13 cents.

The Analyst

KeyBanc Capital Markets analyst Philip Gibbs maintained a Sector Weight rating on AK Steel. 

The Thesis

The EPS headlines may have glossed over the exclusion of 24 cents related to non-crash accruals from the wind down of the company’s Ashland Works, Gibbs said in a Monday note. (See the analyst's track record here.)

Apples-to-apples, the earnings were closer to in-line, he said. 

The company’s guidance was cool, the analyst said, warning that investors could react as early as Tuesday.

“We expect the stock to decline (Tuesday) on tepid forward guidance and limited-to-no forward free cash flow to equity." 

Price Action

AK Steel shares were up 0.81 percent at $2.48 at the time of publication Tuesday. 

Related Links:

Steel Stocks Have Wall Street's Attention

Seaport Global Says The Steel Industry Is Due For A Bounce

Latest Ratings for AKS

DateFirmActionFromTo
Feb 2020CFRAUpgradesHoldBuy
Dec 2019UBSUpgradesSellNeutral
Dec 2019JP MorganUpgradesUnderweightNeutral

View More Analyst Ratings for AKS
View the Latest Analyst Ratings

 

Related Articles (AKS)

View Comments and Join the Discussion!

Posted-In: KeyBanc Capital Markets penny stockAnalyst Color Earnings News Guidance Reiteration Analyst Ratings Best of Benzinga

Latest Ratings

StockFirmActionPT
WYRBC CapitalMaintains33.0
TRBC CapitalMaintains25.0
VFCRBC CapitalMaintains66.0
HIGRBC CapitalMaintains46.0
TRIRBC CapitalMaintains77.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com