Cleveland-Cliffs shares surge after strong earning

Cleveland-Cliffs Inc. CLF, +13.07% shares surged more than 10% Friday after second-quarter earnings beat estimates and as the mining company said its iron ore revenue increased.

The Cleveland-based mining and natural resources company reported a second-quarter profit of $165.1 million, or 55 cents a share, compared to $31.8 million, or 10 cents a share, for the same period a year ago.

The company reported income from continuing operations of 77 cents a share, compared to 28 cents a share a year earlier. Analysts were expecting adjusted earnings of 53 cents a share.

Revenue of $714 million beat analysts’ expectations of $645 million. The company said its U.S. iron ore realized revenue rate increased 16% to $113 per long ton.

"Going forward, we expect 2019 to be a continuation of a great 2018, based on the renewed strength of American manufacturing, the multi-year positive impact of the tax reform implemented in 2018 in the United States, and our strong position as the supplier of iron ore pellets within the Great Lakes region," Chief Executive Lourenco Goncalves said.

Shares are up around 35% to $9.76 so far this year, compared to the S&P 500, which is up 5% in 2018.

Write to Nishant Mohan at [email protected]

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