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Shares of Cleveland-Cliffs Inc. fell more than 6% Friday after Chief Executive Lourenco Goncalves slammed analysts during the mining company's earnings call earlier in the day, accusing them of failing to understand numbers and targeting .
Cleveland Cliffs
CLF -4.70%
stock hovered at its lowest since Sept.
The company earlier Friday reported third-quarter GAAP earnings that beat Wall Street expectations, announced it was resuming a dividend payment, and highlighted that it was fresh from renewing a union contract.
Goncalves fired his first salvo soon after the conference call his first remarks wrapped up.
He told Lucas Pipes, an analyst with B. Riley who had a question about the dividend, that he was "one of the best" but some of the analysts "can not read numbers."
It quickly went downhill, with Goncalves appearing to be most direct of Goldman Sachs analyst Matthew Korn.
Despite the company paying down debt, it was possible that it was possible that it was so bad, Goncalves said.
See now: This company turned its earnings into a port-a-potties' stake
"It's unbelievable that this big (bank) has still employed this type of people, you guys should resign for your lack of knowledge of things … it's not like we do not understand our business, you do not understand your own business , "The CEO said, according to a transcript of the call provided by FactSet.
"You are a disaster. You are an embarrassment to your parents. With this being said, we are going to use money to reward the long-term shareholders. So if the stock continues to go down, we're going to buy back stock, "he said.
See also: This company is going to talk about it.
Related: There's a link between CEOs who torture the English language and poor stock performance
"We are going to screw these guys so badly that I do not think they will be able to only resign. They will have to commit suicide. So we are going to screw these guys so badly that it will be fun to watch, "Goncalves said.
"You are messing with a wrong guy. That's my message to you, "the CEO said as he walked towards the end of the tirade.
Goncalves asked whether or not to ask a question. When told by the operator Korn was not, Golcalves addressed him directly.
"Matthew Korn, if you are on the call, it is still 10:42, why you do not ask a freaking question. I will be happy to answer, "he said.
Goldman's Korn has a neutral rating on Cleveland-Cliffs and said Friday that Cleveland-Cliffs had "modestly missed" the bank's and Reuters' consensus estimates but investors were likely to focus on the dividend as "the major takeaway from the quarter. "
The note was published before the call. A Goldman Sachs' spokesman declined to comment on what transpired during the call.
Curt Woodworth, an analyst with Credit Suisse, alluded to Tesla Inc.
TSLA, -2.17%
Chief Executive Elon Musk's infamous call with analysts in May, and Musk's Twitter clothes.
"Given your logical CEO's strategy to make you shorts," "I'm sure you'll be able to appreciate a lot of your views," Woodworth said, according to the transcript.
Goncalves did not appear to the address to Musk, and saved a last bar for Korn, saying that "you can run, but you can not hide."
They said, "He said, at Goldman Sachs' conference, and Korn better bring your commodity guy" to an interview with him, Goncalves said.
"If you are alone, it would be a lot worse, it will be no matter what, but it will be a lot worse if you're alone," he said.
Cleveland-Cliffs earlier Friday reported third-quarter profits of $ 438 million, or $ 1.41 a share, compared with $ 53 million, or 18 cents a share, in the year-ago period. Revenue rose to $ 742 million from $ 597 million a year ago. It reported EPS from continuing operation of 64 cents.
Analysts polled by FactSet had expected earnings of 67 cents on share of $ 722 million for the quarter. Adjusted EPS was seen at 66 cents.
Cleveland-Cliffs shares have gained 48% this year, compared with earnings of 3.4% and 2.7% for the S & P 500 index
SPX, + 0.12%
and the Dow Jones Industrial Average
DJIA, + 0.39%
in the same period.
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