U.S. Steel Corporation

U.S. Steel Corporation’s (X - Analyst Report) record results signal stellar growth. The company’s strong cash flow enables it to hike dividends, which is what occurred in late July when U.S. Steel upped its dividend by 5 cents per share, declaring a 30-cent dividend. The company’s earnings per share are expected to grow by 14% over the next 3 to 5 years, outpacing the industry average projection of 10%.

Company Description

United States Steel Corporation produces steel, running major production operations in the United States, Canada and Central Europe. The company manufactures a wide range of value-added steel sheet and tubular products for the automotive, appliance, container, industrial machinery, construction, and oil and gas industries. U.S. Steel is headquartered in Pittsburgh, PA.

Bullish Forecasts

United States Steel Corporation has seen analysts boost full-year earnings estimates. Forecasts of $20.61 per share climbed from $16.98 over the past 60 trading days. The most accurate estimate is higher at $21.67.

Higher Income

The company’s strong cash flow enables it to hike dividends, which is what occurred in late July when U.S. Steel upped its dividend by 5 cents per share, declaring a 30-cent dividend. The dividend was paid out on September 10, 2008. U.S. Steel’s dividend yield of 1.1% is above the industry average.

Strong Growth with Record Numbers

The company also announced second-quarter results in late July. Net income of $668 million soared past the previous year’s $302 million. During the past 5 consecutive quarters, earnings per share were on average about 9% ahead of analyst expectations, with the most recent results coming in at an impressive 49.5% above expectations.

Commenting on results, U. S. Steel Chairman and CEO John P. Surma said, "We recorded the highest quarterly sales and net income in U. S. Steel's history during the second quarter as all three reportable segments posted record results, reflecting strong operating performance and favorable global pricing dynamics."

The company’s earnings per share are expected to grow by 14% over the next 3 to 5 years, outpacing the industry average projection of 10%.