Cliffs Natural Resources 2Q Earnings Pregame Scorecard

After falling short of analyst expectations last quarter, Cliffs Natural Resources (NYSE:CLF) will try to redeem itself when it reports again on Wednesday.

Expectations

Analysts currently expect Cliffs Natural Resources to come in with earnings of $1.79 per share on revenues of $1.82 billion. Analysts gave estimates ranging from earnings per share to earnings per share. Over the past three months, the average estimate has moved down from $2.30.

Stock Movement

In terms of price changes, the stock's best recent streak was when it gained $4.71 per share between June 13, 2012 and June 20, 2012. Looking at change over the last three months, April 23, 2012 and July 18, 2012, the stock price fell $20.13 (-30.5%), from $65.99 to $45.86.

Company Fundamental Trends On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 52.5% in the second quarter of the last fiscal year, 59.2% in the third quarter of the last fiscal year and 16.7% in the fourth quarter of the last fiscal year before increasing again in the first quarter. The company will look to use this earnings announcement to rebound after suffering income drops the past two quarters. Net income fell 49.5% during the fourth quarter of the last fiscal year and yet again in the first quarter.

Stock Ratings

Analysts are bullish on the stock as 10 analysts rate it as a buy and there are no sell ratings. Analyst sentiment has been improving recently, as the average rating risen slightly over the past three months.

Last Quarter's Results

In the first quarter, profit fell 11.2% to $375.8 million ($2.63 a share) from $423.4 million ($3.11 a share) the year earlier, missing analyst expectations. Revenue rose 6.9% to $1.26 billion from $1.18 billion.

Summary

Reporting Period: 2Q

Date of Release: Wednesday, July 25, 2012

EPS: $1.79

Revenue Estimate: $1.82 billion

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)