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