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U.S. Steel's (X) Earnings and Revenues Surpass Estimates in Q3
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United States Steel Corporation (X - Free Report) logged a profit of $490 million or $1.85 per share in third-quarter 2022, down from a profit of $2,002 million or $6.97 per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share were $1.95 per share. The figure surpassed the Zacks Consensus Estimate of $1.92.
Revenues fell around 13% year over year to $5,203 million in the reported quarter. It, however, beat the Zacks Consensus Estimate of $4,913.9 million.
The company witnessed demand headwinds in the quarter. Its Mini Mill and U. S. Steel Europe segments were also challenged by elevated raw material costs. Higher energy costs also impacted the U. S. Steel Europe unit. The company’s bottom line in the reported quarter was also hurt by lower prices across Flat-Rolled, Mini Mill and U. S. Steel Europe segments.
The company’s overall shipments dropped around 10% year over year in the quarter to 3,698,000 tons.
United States Steel Corporation Price, Consensus and EPS Surprise
Flat-Rolled: The segment recorded a profit of $505 million in the reported quarter, down around 50% year over year.
Steel shipments in the segment fell roughly 7% year over year to 2,176,000 tons. Average realized price per ton in the unit was $1,232, down around 7% year over year.
Mini Mill: The segment recorded a profit of $1 million in the quarter, down from $424 million in the year-ago quarter. Shipments were 529,000 tons, down around 13% year over year. Average realized price per ton was $1,096, down around 28% year over year.
U.S. Steel Europe: The segment posted a loss of $32 million, compared with a profit of $394 million in the year-ago quarter. Shipments in the segment fell around 19% year over year to 867,000 tons. Average realized price per ton for the unit was $1,021, down around 11% year over year.
Tubular: The segment posted a profit of $155 million in the reported quarter. Shipments rose roughly 2% year over year to 126,000 tons. Average realized price per ton for the unit was $3,217, up roughly 89% year over year.
Financials
At the end of the quarter, the company had cash and cash equivalents of $3,364 million, up around 65% year over year. Long-term debt fell roughly 10% year over year to $3,863 million.
Outlook
U.S. Steel said that it remains focused on the opportunity to in-source Mini Mill metallics as a competitive cost advantage as it works through the costlier raw materials through the end of this year. The company also expects energy costs to remain high in the U.S. Steel Europe unit. It also expects roughly 40% of its strategic investments to be complete by the year end.
Price Performance
The company’s shares are down 20.1% in the past year compared with the industry’s 15% decline.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
U.S. Steel currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks worth considering in the basic materials space include Albemarle Corporation (ALB - Free Report) , Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) and Ryerson Holding Corporation (RYI - Free Report) .
Albemarle, currently sporting a Zacks Rank #1 (Strong Buy), has a projected earnings growth rate of 430.7% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 5.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 24.2%, on average. ALB has gained around 12% in a year.
Sociedad has a projected earnings growth rate of 530.7% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 2.1% upward in the past 60 days.
Sociedad has a trailing four-quarter earnings surprise of roughly 27.2%. SQM has rallied roughly 67% in a year. The company currently carries a Zacks Rank #1.
Ryerson Holding, currently carrying a Zacks Rank #1, has an expected earnings growth rate of 74.2% for the current year. The consensus estimate for RYI's earnings for the current year has been revised 3.2% upward in the past 60 days.
Ryerson Holding’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 28.9%. RYI has gained around 23% over a year.
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U.S. Steel's (X) Earnings and Revenues Surpass Estimates in Q3
United States Steel Corporation (X - Free Report) logged a profit of $490 million or $1.85 per share in third-quarter 2022, down from a profit of $2,002 million or $6.97 per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share were $1.95 per share. The figure surpassed the Zacks Consensus Estimate of $1.92.
Revenues fell around 13% year over year to $5,203 million in the reported quarter. It, however, beat the Zacks Consensus Estimate of $4,913.9 million.
The company witnessed demand headwinds in the quarter. Its Mini Mill and U. S. Steel Europe segments were also challenged by elevated raw material costs. Higher energy costs also impacted the U. S. Steel Europe unit. The company’s bottom line in the reported quarter was also hurt by lower prices across Flat-Rolled, Mini Mill and U. S. Steel Europe segments.
The company’s overall shipments dropped around 10% year over year in the quarter to 3,698,000 tons.
United States Steel Corporation Price, Consensus and EPS Surprise
United States Steel Corporation price-consensus-eps-surprise-chart | United States Steel Corporation Quote
Segment Highlights
Flat-Rolled: The segment recorded a profit of $505 million in the reported quarter, down around 50% year over year.
Steel shipments in the segment fell roughly 7% year over year to 2,176,000 tons. Average realized price per ton in the unit was $1,232, down around 7% year over year.
Mini Mill: The segment recorded a profit of $1 million in the quarter, down from $424 million in the year-ago quarter. Shipments were 529,000 tons, down around 13% year over year. Average realized price per ton was $1,096, down around 28% year over year.
U.S. Steel Europe: The segment posted a loss of $32 million, compared with a profit of $394 million in the year-ago quarter. Shipments in the segment fell around 19% year over year to 867,000 tons. Average realized price per ton for the unit was $1,021, down around 11% year over year.
Tubular: The segment posted a profit of $155 million in the reported quarter. Shipments rose roughly 2% year over year to 126,000 tons. Average realized price per ton for the unit was $3,217, up roughly 89% year over year.
Financials
At the end of the quarter, the company had cash and cash equivalents of $3,364 million, up around 65% year over year. Long-term debt fell roughly 10% year over year to $3,863 million.
Outlook
U.S. Steel said that it remains focused on the opportunity to in-source Mini Mill metallics as a competitive cost advantage as it works through the costlier raw materials through the end of this year. The company also expects energy costs to remain high in the U.S. Steel Europe unit. It also expects roughly 40% of its strategic investments to be complete by the year end.
Price Performance
The company’s shares are down 20.1% in the past year compared with the industry’s 15% decline.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
U.S. Steel currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks worth considering in the basic materials space include Albemarle Corporation (ALB - Free Report) , Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) and Ryerson Holding Corporation (RYI - Free Report) .
Albemarle, currently sporting a Zacks Rank #1 (Strong Buy), has a projected earnings growth rate of 430.7% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 5.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 24.2%, on average. ALB has gained around 12% in a year.
Sociedad has a projected earnings growth rate of 530.7% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 2.1% upward in the past 60 days.
Sociedad has a trailing four-quarter earnings surprise of roughly 27.2%. SQM has rallied roughly 67% in a year. The company currently carries a Zacks Rank #1.
Ryerson Holding, currently carrying a Zacks Rank #1, has an expected earnings growth rate of 74.2% for the current year. The consensus estimate for RYI's earnings for the current year has been revised 3.2% upward in the past 60 days.
Ryerson Holding’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 28.9%. RYI has gained around 23% over a year.