Cliffs Natural Resources Inc. (NYSE:CLF) is a leading mining and natural resources company. Cliffs is the largest producer of iron ore pellets in North America.
Cliffs is focused on deleveraging its balance sheet, improving the cost structure and managing cash efficiently. The company is expected to gain from ArcelorMittal and U.S. Steel Canada deals and an expected rise in steel demand in the U.S.
Let’s have a quick look at the company’s first-quarter 2017 release.
Estimate Trend & Surprise History
Investors should note that the earnings estimate for Cliffs for the first quarter has seen a downtrend over the past month. Cliffs has beaten the Zacks Consensus Estimate in 3 of the trailing 4 quarters, while missing in one, with an average beat of around 57.33%.
Earnings
Cliffs’ net loss came in at 11 cents per share in the first quarter, missing the Zacks Consensus Estimate of earnings of 16 cents.
Revenues
Cliffs reported revenues of $461.6 million, beating the Zacks Consensus Estimate of $373 million.
Key Stats/Developments to Note
For 2017, Cliffs expects to generate net income of $380 million. The company projects its full-year selling, general and administrative (SG&A) expenses to be around $100 million, which remains unchanged from previous expectations.
Cliffs expects its 2017 capital expenditures to be $105 million.
Zacks Rank
Currently, Cliffs has a Zacks Rank #3 (Hold), but that could change following its earnings report which was just released.
Market Reaction
Cliffs’ shares were down 5.8% in the pre-market trading following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on Cliffs’ earnings report!
Looking for Ideas with Even Greater Upside?
Most of Zacks’ investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information>>
Cliffs Natural Resources Inc. (CLF): Free Stock Analysis Report
Original post
Zacks Investment Research