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.

Created by Dividend.com

This article appears in: Investing , Stocks

Referenced Stocks: AKS



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