(AKS) - Consensus earnings estimates have also risen over the past two months - Exceeded earnings estimates in 10 out of the past 12 quarters

AK Steel has exceeded earnings estimates in 10 out of the past 12 quarters. One analyst has raised his numbers over the past 60 days for both this year and next year. Consensus earnings estimates have also risen over the past two months. The company is now expected to earn 99 cents per share this year, up from 92 cents 60 days ago. Similarly, AKS is slated to earn $1.10 per share next year, up from 93 cents. Full Analysis AK Steel Holding Corporation (AKS) is a leading producer of flat-rolled carbon, stainless, and electrical steel. It operates seven steel making and finishing plants in Ohio, Pennsylvania, Indiana, and Kentucky. The company s steel operations include AK Tube, which converts flat-rolled steel into welded steel tubing for use in the automotive, large truck, and construction markets, along with European trading companies that buy and sell steel and steel products. The company's steel products are also consumed by the appliance, industrial machinery and equipment, and construction sectors. Its steel products include aluminum-coated stainless steel, coil-coated steel, cold-rolled coated steel, electro-galvanized steel, hot-dipped galvanized steel, and hot-rolled steel. According to Zacks Equity Research Analyst Paul Raman, higher contract prices, increased surcharges to combat rising raw material costs, cost reduction initiatives, and capacity expansion are expected to improve AKS' s profitability in the long run. AK Steel is likely to benefit from higher renegotiated contract prices and surcharges imposed to offset cost inflation. Nearly 70% of the company's 2006 business is under contract, 67% of which AKS has renegotiated at higher prices, which will help in boosting margins in spite of lower spot steel prices. Moreover, based on strong demand conditions, AKS expects a double-digit increase in the new contract prices of oriented electrical steel products. The company is negotiating a progressive new labor agreement to allow for a more flexible and lower cost structure. The company has exceeded earnings estimates in 10 out of the past 12 quarters. One analyst has raised his numbers over the past 60 days for both this year and next year. Consensus earnings estimates have also risen over the past two months. The company is now expected to earn 99 cents per share this year, up from 92 cents 60 days ago. Similarly, AKS is slated to earn $1.10 per share next year, up from 93 cents. AKS is trading at an attractive forward price-to-earnings ratio of 11.5, well below the projected long-term growth rate of 20%, giving the stock a PEG ratio of 0.57. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home