Cliffs Natural Resources Inc. 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 also expected to gain from an expected rise in steel demand in the U.S.

Let’s have a quick look at the company’s second-quarter 2017 release.

Estimate Trend & Surprise History

Investors should note that the earnings estimate for Cliffs for the second quarter has seen a downtrend over the past month. Cliffs has beaten the Zacks Consensus Estimate in 2 of the trailing 4 quarters, while missing in the other two, with an average miss of around 3.82%. 

Cliffs Natural Resources Inc. Price and EPS Surprise

Cliffs Natural Resources Inc. Price and EPS Surprise | Cliffs Natural Resources Inc. Quote

Earnings

Cliffs’ adjusted earnings came in at 26 cents per share in the second quarter, topping the Zacks Consensus Estimate of earnings of 18 cents.

Revenues

Cliffs reported revenues of $569.3 million, beating the Zacks Consensus Estimate of $483 million.

Key Stats/Developments to Note

For 2017, Cliffs expects to generate net income of around $310 million. The company projects its full-year selling, general and administrative (SG&A) expenses to be around $110 million, an increase from previous expectations to incorporate HBI prefeasibility spend and higher-than-expected incentive compensation accruals.

Cliffs expects its 2017 capital expenditures to be $115 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 up 5% 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!

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