On Wednesday, Shares of Cleveland-Cliffs Inc. (NYSE: CLF) declined -2.36% to $10.15. The stock grabbed the investor's attention and traded 4,507,867 shares as compared to its average daily volume of 10.75M shares. The stock’s institutional ownership stands at 74.80%.
Cleveland-Cliffs Inc. (CLF) recently stated fourth-quarter and full-year results for the period ended December 31, 2018.
Fourth-quarter 2018 consolidated revenues were $696.0M, contrast to prior-year fourth-quarter revenues of $512.0M. Cost of goods sold and operating expenses were $494.0M, contrast to $396.0M stated in the fourth quarter of 2017.
For the fourth quarter of 2018, the Company recorded net income of $610.0M, contrast to net income of $310.0M recorded in the prior-year quarter.
Fourth-quarter 2018 Adjusted EBITDAÂ was $188.0M, a 40 percent increase contrast to $134.0M in the fourth quarter of 2017.
Full-Year Consolidated Results:
Full-year 2018 consolidated revenues were $2.3B, contrast to the prior year's revenues of $1.9B. Cost of goods sold and operating expenses were $1.5B, contrast to $1.4B stated in 2017.
For the full-year 2018, the Company recorded net income of $1.1B, contrast to net income of $363.0M recorded in the prior year.
For the full-year 2018, Adjusted EBITDAÂ was $766.0M, a 67 percent increase contrast to $460.0M in 2017.
SG&A Expenses and Other Expectations:
Full-year 2019 SG&A expenses are expected to be about $120.0M. Cliffs notes that of the $120.0M expectation, about $20.0M is considered non-cash.
The Company's full-year 2019 interest expense is expected to be about $100.0M, contrast to $119.0M recorded in 2018. The Company anticipates about $20.0M in cash interest related to the HBI project to be capitalized, contrast to $6.0M that was capitalized in 2018. The Company’s 2019 effective tax rate is expected to be about 10%. However, because of the Company's NOL position, its cash tax payments are expected to be zero.
Moreover, Cliffs also anticipates receiving $117.0M in cash tax refunds during the third quarter of 2019.
Consolidated full-year 2019 depreciation, depletion and amortization is expected to be about $85.0M, incurred ratably throughout the year.
Capital Expenditures:
Cliffs' 2019 capital spending expectations are:
- About $425.0M toward the HBI project in Toledo, OH
- About $70.0M in sustaining capital
- About $40.0M toward the completion of the upgrade at the Northshore mine
- About $20.0M in capitalized interest.
CLF has a market value of $3.00B while its EPS was booked as $3.40 in the last 12 months. The stock has 288.92M shares outstanding. In the profitability analysis, the company has gross profit margin of 34.80% while net profit margin was 48.40%. Beta value of the company was 1.80; beta is used to measure riskiness of the security. Analyst recommendation for this stock stands at 2.30.
