StockCall Review on AK Steel and Steel Dynamics: Steel Industry Stocks Announce Positive Quarterly Results
LONDON, February 14, 2013 /PRNewswire/ --
Steel Industry is making a comeback. Despite, the continuing weakness in developed economies in the U.S. and Europe, the companies are optimistic about better conditions in developing economies. Demand in the U.S. is also expected to pick up as the housing sector shows signs of recovery. Steel Dynamics Inc. (NASDAQ: STLD) posted healthy Q4 results and provided upbeat guidance. AK Steel Holding Corp. (NYSE: AKS) also met expectations. The sector faces stiff competition from the Aluminum sector. However, companies are diversifying their businesses to meet this challenge. The industry is also seeing good R&D efforts to develop lighter steel. StockCall analysts initiated preliminary technical research on AK Steel and Steel Dynamics. These free reports are accessible by signing today at
Steel Dynamics Reports Q4 Numbers
Steel Dynamics posts healthy results for its fourth quarter. With $1.71 billion in revenue, the company conveniently surpassed consensus estimates of $1.699 billion in revenue. Its EPS at 19 cents per share also got the better of the expected 15 cents per share in income. The company also provided rosy outlook as it expects its next quarter revenue to be at $1.9 billion. It expects its EPS to be at 27 cents per share. Going by these figures, it can be expected that the stock price will follow suit and retain its upward trajectory. Register now to download the free research on Steel Dynamics Inc. at
Steel Dynamics is engaged in the business of producing steel and metal recycling. The company is now looking to vertically integrate its business to bring about more efficiency in its processes. However, the company management ruled out aggressive growth plan and stressed that it will make acquisition only when suitable synergies are there. Steel Dynamics had to scale back its operations in wake of weak economy. However, it expects to grow this year. The steel company is also optimistic about its future plans as low energy costs have reduced input costs, boosting manufacturing activities. Increase in manufacturing activities translates to better steel demand and increased revenue for the company.
Steel Dynamics stock posted impressive 15 percent growth so far in 2013. Its optimistic outlook will push price further, providing better returns for investors. Furthermore, the stock also offers 2.53 percent dividend yield, making it a good investment avenue for income investors.
AK Steel Holdings Suffers Loss in Q4
AK Steel Holdings is one of the most highly levered plays in the steel sector. While high leverage may provide better returns, it also increases the risk quotient, making this stock unsuitable for conservative investors. The free technical analysis on AK Steel Holding Corp. is available by signing up at
AK Steel Holding reported its fourth quarter results with its revenue at $1.42 billion. It suffered quarterly loss of 30 cents per share, better-than-expected loss of 34 cents per share. However, the figure contains pre-tax charges worth $1.59 per share. The company suffered due to low steel prices and expects to perform better this year. It has projected its Q1 earnings at -$0.06 and revenue at $1.47 billion.
AK Steel Holding recently raised its prices for carbon steel. While the move may have adverse impact on sales volume, it is expected to increase its margins. The move will also help the company in countering soft demand for steel. The stock lost 50 percent of its value over past 12 months. However, with the change in strategy, the stock is expected to recoup some of its losses.
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