Emma Asma Cornwall
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Emma Asma Cornwall in Gainers & Losers,

Cliffs Natural is overreacting, really

Cliffs Natural Resources is surging after reporting a surprise Q1 profit, reporting adjusted earnings of $0.62/ while analysts were expecting a $0.10/share loss; revenues also came in higher than expected even as they declined 31% Y/Y. Q1 results were helped by refinancing related to its attempts to improve its balance sheet, as well as lower production and overhead costs.

The U.S. steel market "has started to show consistent signs of a real recovery, with a direct positive impact on our steel clients' order books" and improved demand for its iron ore pellets, CEO Lourenco Goncalves said.

Not bad! But 31% jump is really crazy, so I'd expect corrective move in short-term...