POSCO (NYSE:PKX) Issues Quarterly Earnings Results, Beats Estimates By $0.12 EPS

Key Points

• EPS and revenue beat: POSCO reported quarterly EPS of $1.01, beating consensus by $0.12, and revenue of $11.88 billion versus $11.75 billion expected, though net margin was modest at 1.19% and ROE 1.35%.
• Stock and valuation: Shares traded down about 1% to $78.63 despite the beat; the company has a market cap of $23.78 billion and a high trailing P/E of 59.57.
• Mixed analyst and institutional activity: Analysts are split (upgrades from UBS and Weiss, a downgrade from Zacks) leaving an average "Hold" rating, while several institutional investors made small new or increased positions during recent quarters.

POSCO (NYSE:PKX - Get Free Report) announced its earnings results on Friday. The basic materials company reported $1.01 EPS for the quarter, topping the consensus estimate of $0.89 by $0.12, Zacks reports. POSCO had a net margin of 1.19% and a return on equity of 1.35%. The business had revenue of $11.88 billion during the quarter, compared to analysts' expectations of $11.75 billion.

POSCO Trading Down 1.0%

Shares of NYSE PKX traded down $0.77 during midday trading on Friday, reaching $78.63. The stock had a trading volume of 160,296 shares, compared to its average volume of 166,367. The firm has a market cap of $23.78 billion, a price-to-earnings ratio of 59.57, a price-to-earnings-growth ratio of 0.54 and a beta of 1.58. POSCO has a twelve month low of $42.35 and a twelve month high of $80.15. The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.29 and a current ratio of 1.88. The company's 50 day moving average price is $63.14 and its 200 day moving average price is $58.46.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC acquired a new position in shares of POSCO during the 4th quarter valued at $25,000. Allworth Financial LP raised its holdings in POSCO by 51.6% during the third quarter. Allworth Financial LP now owns 682 shares of the basic materials company's stock worth $34,000 after buying an additional 232 shares during the last quarter. Headlands Technologies LLC raised its holdings in POSCO by 1,276.9% during the second quarter. Headlands Technologies LLC now owns 1,432 shares of the basic materials company's stock worth $69,000 after buying an additional 1,328 shares during the last quarter. Inspire Investing LLC acquired a new position in POSCO during the fourth quarter worth $85,000. Finally, Raymond James Financial Inc. acquired a new position in POSCO during the second quarter worth $95,000.

Wall Street Analyst Weigh In

Several research analysts recently commented on the stock. Zacks Research cut shares of POSCO from a "hold" rating to a "strong sell" rating in a report on Thursday, April 9th. UBS Group raised shares of POSCO from a "neutral" rating to a "buy" rating in a research report on Monday, April 27th. Finally, Weiss Ratings upgraded shares of POSCO from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Wednesday, April 22nd. Two research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of "Hold".

POSCO Company Profile

POSCO NYSE: PKX is a South Korea–based integrated steel producer founded in 1968 as Pohang Iron and Steel Company. Headquartered in Pohang, the company grew rapidly as part of South Korea's industrialization program and developed large, integrated steelworks—most notably in Pohang and Gwangyang—that helped establish POSCO among the world's largest steelmakers. It is structured as a diversified industrial group with steelmaking at its core and a range of downstream and trading businesses.

The company's primary activities include ironmaking and steelmaking, producing a wide array of steel products such as hot-rolled and cold-rolled sheets, coated steels, plates, stainless and special steels, long products (bars and wire rods), and seamless pipes.

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