United States Steel Corporation (X - Free Report) logged a profit of $978 million or $3.42 per share in second-quarter 2022, down from a profit of $1,012 million or $3.53 per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share were $3.86 per share. The figure trailed the Zacks Consensus Estimate of $3.87. Our estimate for the quarter was $2.78.
Revenues rose around 25% year over year to $6,290 million in the reported quarter. It beat the Zacks Consensus Estimate of $5,808.6 million. The figure also compares to our estimate of $5,366.4 million.
The company benefited from higher prices across its segments in the quarter. Its overall shipments dropped around 0.7% year over year in the quarter to 4,183,000 tons, compared to the consensus estimate of 4,065,000 tons. The figure also compares to our estimate of 4,185,000 tons.
Segment Highlights
Flat-Rolled: The segment recorded a profit of $777 million in the second quarter, up around 34% year over year.
Steel shipments in the segment rose roughly 2% year over year to 2,365,000 tons, compared to the consensus estimate of 2,324,000 tons. Average realized price per ton in the unit was $1,339, up around 24% year over year, compared to the consensus estimate of $1,345. These numbers compare to our estimate for shipments of 2,434,000 tons and average realized price per ton of $1,259.
Mini Mill: The segment recorded a profit of $270 million in the quarter, down around 5% year over year. Shipments were 615,000 tons, flat year over year, compared to the consensus estimate of 581,000 tons. Average realized price per ton was $1,331, up around 10% year over year, compared to the consensus estimate of $1,265. These compare to our estimate for shipments of 597,000 tons and average realized price per ton of $1,613.
U.S. Steel Europe: The segment posted profits of $280 million, up around 35% year over year. Shipments in the segment fell around 9% year over year to 1,067,000 tons, compared to the consensus estimate of 1,031,000 tons. Average realized price per ton for the unit was $1,217, up around 34% year over year, compared to the consensus estimate of $1,109. These compare to our estimate for shipments of 1,030,000 tons and average realized price per ton of $1,201.
Tubular: The segment posted a profit of $107 million in the year-ago quarter. Shipments rose roughly 30% year over year to 136,000 tons, compared to the consensus estimate of 128,000 tons. Average realized price per ton for the unit was $2,727, up roughly 67% year over year, compared to the consensus estimate of $2,393. These compare to our estimate for shipments of 124,000 tons and average realized price per ton of $1,004.
Financials
At the end of the quarter, the company had cash and cash equivalents of $3,035 million, up around 128% year over year. Long-term debt fell roughly 19% year over year to $3,869 million.
The company completed its $800 million stock buyback authorization and announced a new $500 million stock buyback authorization. It repurchased $400 million of its common stock during the second quarter.
Outlook
U.S. Steel said that demand in line pipe and energy is accelerating while some consumer-oriented markets like automotive and appliance remain softer. The company has demonstrated a commitment to achieve and maintain a strong balance sheet, a supportive debt maturity profile and a balanced approach to capital allocation, it noted.
Price Performance
The company’s shares are down 18% in the past year compared with the industry’s 23.3% decline.
Zacks Rank & Other Key Picks
U.S. Steel currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks worth considering in the basic materials space include Cabot Corporation (CBT - Free Report) , ATI Inc. (ATI - Free Report) and Albemarle Corporation (ALB - Free Report) .
Cabot, currently carrying a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 22.5% for the current fiscal year. The Zacks Consensus Estimate for CBT's earnings for the current fiscal has been revised 0.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 33% over a year.
ATI, currently sporting a Zacks Rank #1, has a projected earnings growth rate of 1,069.2% for the current year. The Zacks Consensus Estimate for ATI's current-year earnings has been revised 12.5% upward in the past 60 days.
ATI’s earnings beat the Zacks Consensus Estimate in the last four quarters. It has a trailing four-quarter earnings surprise of roughly 128.9%, on average. ATI shares are up around 21% in a year.
Albemarle has a projected earnings growth rate of 241.8% for the current year. The Zacks Consensus Estimate for ALB’s current-year earnings has been revised 18% upward in the past 60 days.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 20%. ALB has gained roughly 15% in a year. The company flaunts a Zacks Rank #2.
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United States Steel Corporation (X - Free Report) logged a profit of $978 million or $3.42 per share in second-quarter 2022, down from a profit of $1,012 million or $3.53 per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share were $3.86 per share. The figure trailed the Zacks Consensus Estimate of $3.87. Our estimate for the quarter was $2.78.
Revenues rose around 25% year over year to $6,290 million in the reported quarter. It beat the Zacks Consensus Estimate of $5,808.6 million. The figure also compares to our estimate of $5,366.4 million.
The company benefited from higher prices across its segments in the quarter. Its overall shipments dropped around 0.7% year over year in the quarter to 4,183,000 tons, compared to the consensus estimate of 4,065,000 tons. The figure also compares to our estimate of 4,185,000 tons.
Segment Highlights
Flat-Rolled: The segment recorded a profit of $777 million in the second quarter, up around 34% year over year.
Steel shipments in the segment rose roughly 2% year over year to 2,365,000 tons, compared to the consensus estimate of 2,324,000 tons. Average realized price per ton in the unit was $1,339, up around 24% year over year, compared to the consensus estimate of $1,345. These numbers compare to our estimate for shipments of 2,434,000 tons and average realized price per ton of $1,259.
Mini Mill: The segment recorded a profit of $270 million in the quarter, down around 5% year over year. Shipments were 615,000 tons, flat year over year, compared to the consensus estimate of 581,000 tons. Average realized price per ton was $1,331, up around 10% year over year, compared to the consensus estimate of $1,265. These compare to our estimate for shipments of 597,000 tons and average realized price per ton of $1,613.
U.S. Steel Europe: The segment posted profits of $280 million, up around 35% year over year. Shipments in the segment fell around 9% year over year to 1,067,000 tons, compared to the consensus estimate of 1,031,000 tons. Average realized price per ton for the unit was $1,217, up around 34% year over year, compared to the consensus estimate of $1,109. These compare to our estimate for shipments of 1,030,000 tons and average realized price per ton of $1,201.
Tubular: The segment posted a profit of $107 million in the year-ago quarter. Shipments rose roughly 30% year over year to 136,000 tons, compared to the consensus estimate of 128,000 tons. Average realized price per ton for the unit was $2,727, up roughly 67% year over year, compared to the consensus estimate of $2,393. These compare to our estimate for shipments of 124,000 tons and average realized price per ton of $1,004.
Financials
At the end of the quarter, the company had cash and cash equivalents of $3,035 million, up around 128% year over year. Long-term debt fell roughly 19% year over year to $3,869 million.
The company completed its $800 million stock buyback authorization and announced a new $500 million stock buyback authorization. It repurchased $400 million of its common stock during the second quarter.
Outlook
U.S. Steel said that demand in line pipe and energy is accelerating while some consumer-oriented markets like automotive and appliance remain softer. The company has demonstrated a commitment to achieve and maintain a strong balance sheet, a supportive debt maturity profile and a balanced approach to capital allocation, it noted.
Price Performance
The company’s shares are down 18% in the past year compared with the industry’s 23.3% decline.
Zacks Rank & Other Key Picks
U.S. Steel currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks worth considering in the basic materials space include Cabot Corporation (CBT - Free Report) , ATI Inc. (ATI - Free Report) and Albemarle Corporation (ALB - Free Report) .
Cabot, currently carrying a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 22.5% for the current fiscal year. The Zacks Consensus Estimate for CBT's earnings for the current fiscal has been revised 0.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 33% over a year.
ATI, currently sporting a Zacks Rank #1, has a projected earnings growth rate of 1,069.2% for the current year. The Zacks Consensus Estimate for ATI's current-year earnings has been revised 12.5% upward in the past 60 days.
ATI’s earnings beat the Zacks Consensus Estimate in the last four quarters. It has a trailing four-quarter earnings surprise of roughly 128.9%, on average. ATI shares are up around 21% in a year.
Albemarle has a projected earnings growth rate of 241.8% for the current year. The Zacks Consensus Estimate for ALB’s current-year earnings has been revised 18% upward in the past 60 days.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 20%. ALB has gained roughly 15% in a year. The company flaunts a Zacks Rank #2.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.2% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
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