AK Steel Swings to Q2 Profit, Easily Beating View (AKS)

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Steelmaker AK Steel Holding Corporation ( AKS ) on Tuesday said it swung to a second quarter profit, beating analyst estimates, as the average selling price for its metals rose from last year.

The West Chester, OH-based company reported second quarter net income of $26.7 million, or 24 cents per share, compared with a net loss of $47.2 million, or 43 cents per share, in the year-ago period.

Sales more than doubled from last year, to $1.6 billion.

On average, Wall Street analysts expected a smaller profit of 10 cents per share, on lower revenue of $1.52.

Looking ahead, the company said it expects third quarter shipments to rise 3%, but selling prices should fall 5%, compared with the second quarter.

AK Steel shares rose 55 cents, or +3.6%, in premarket trading Tuesday.

The Bottom Line
We had removed shares of AKS from our recommended list back on July 3, 2008, when the stock was trading at $52.79. The company has a 1.32% dividend yield, based on last night's closing stock price of $15.20. The stock has technical support in the $12 price area. If the shares can firm up, we see overhead resistance around the $18 price level. We would remain on the sidelines for now.

AK Steel Holding Corporation ( AKS ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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