We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The company’s earnings beat the Zacks Consensus Estimate in two of the last four quarters, while missed twice. It has a trailing four-quarter earnings surprise of roughly 4.7%, on average.
Cleveland-Cliffs posted an earnings surprise of around 47.6% in the last reported quarter. CLF is likely to have gained from improved automotive volumes and lower steelmaking unit costs in the second quarter. Higher selling prices are also likely to have supported its margins.
The stock has declined 2.3% in a year’s time compared with the industry’s 12.6% rise.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for the upcoming announcement.
What do the Estimates Say?
The Zacks Consensus Estimate for second-quarter consolidated revenues for Cleveland-Cliffs is currently pegged at $5,507 million, which suggests a year-over-year decline of 13.2%.
Some Factors to Watch For
The company is likely to have witnessed improved sales volumes in the automotive market in the June quarter. Healthy demand in its end markets is likely to have driven its overall volumes in the quarter. Our estimate for external sales volumes for steel products stands at 4,089 million net tons, compared with 4,085 million net tons reported in the prior quarter.
Meanwhile, U.S. steel prices have rebounded this year after tumbling in the fourth quarter of 2022. The benchmark hot-rolled coil prices have recovered, driven by U.S. steel mills’ price hike actions, low import levels, supply tightness partly due to mill outages and a recovery in demand.
Sequentially higher average selling prices are likely to have supported the company’s performance in the quarter to be reported. Our estimate for average net selling price per net ton of steel products is pegged at $1,248 for the second quarter, indicating a 10.6% sequential rise.
Cleveland-Cliffs is also expected to have benefited from actions to lower unit costs. Lower steelmaking unit costs are likely to have supported margins in the second quarter.
Our proven model does not conclusively predict an earnings beat for Cleveland-Cliffs this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for Cleveland-Cliffs is -2.53%. This is because the Most Accurate Estimate is currently pegged at 71 cents while the Zacks Consensus Estimate stands at 73 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Cleveland-Cliffs currently carries a Zacks Rank #3.
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider, as our model shows these have the right combination of elements to post an earnings beat this quarter:
The consensus estimate for AEM’s earnings for the second quarter is currently pegged at 54 cents.
Axalta Coating Systems Ltd. (AXTA - Free Report) , which is slated to release its earnings on Aug 1, has an Earnings ESP of +6.02%.
The consensus estimate for AXTA’s earnings for the second quarter is currently pegged at 39 cents. It currently carries a Zacks Rank #2.
Kinross Gold Corporation (KGC - Free Report) , which is scheduled to release earnings on Aug 2, has an Earnings ESP of +5.56% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for earnings for KGC for the second quarter is pegged at 9 cents.
Image: Bigstock
Cleveland-Cliffs (CLF) to Post Q2 Earnings: What's in Store?
Cleveland-Cliffs Inc. (CLF - Free Report) is slated to release second-quarter 2023 results after the closing bell on Jul 24.
The company’s earnings beat the Zacks Consensus Estimate in two of the last four quarters, while missed twice. It has a trailing four-quarter earnings surprise of roughly 4.7%, on average.
Cleveland-Cliffs posted an earnings surprise of around 47.6% in the last reported quarter. CLF is likely to have gained from improved automotive volumes and lower steelmaking unit costs in the second quarter. Higher selling prices are also likely to have supported its margins.
The stock has declined 2.3% in a year’s time compared with the industry’s 12.6% rise.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for the upcoming announcement.
What do the Estimates Say?
The Zacks Consensus Estimate for second-quarter consolidated revenues for Cleveland-Cliffs is currently pegged at $5,507 million, which suggests a year-over-year decline of 13.2%.
Some Factors to Watch For
The company is likely to have witnessed improved sales volumes in the automotive market in the June quarter. Healthy demand in its end markets is likely to have driven its overall volumes in the quarter. Our estimate for external sales volumes for steel products stands at 4,089 million net tons, compared with 4,085 million net tons reported in the prior quarter.
Meanwhile, U.S. steel prices have rebounded this year after tumbling in the fourth quarter of 2022. The benchmark hot-rolled coil prices have recovered, driven by U.S. steel mills’ price hike actions, low import levels, supply tightness partly due to mill outages and a recovery in demand.
Sequentially higher average selling prices are likely to have supported the company’s performance in the quarter to be reported. Our estimate for average net selling price per net ton of steel products is pegged at $1,248 for the second quarter, indicating a 10.6% sequential rise.
Cleveland-Cliffs is also expected to have benefited from actions to lower unit costs. Lower steelmaking unit costs are likely to have supported margins in the second quarter.
Cleveland-Cliffs Inc. Price and EPS Surprise
Cleveland-Cliffs Inc. price-eps-surprise | Cleveland-Cliffs Inc. Quote
Zacks Model
Our proven model does not conclusively predict an earnings beat for Cleveland-Cliffs this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for Cleveland-Cliffs is -2.53%. This is because the Most Accurate Estimate is currently pegged at 71 cents while the Zacks Consensus Estimate stands at 73 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Cleveland-Cliffs currently carries a Zacks Rank #3.
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider, as our model shows these have the right combination of elements to post an earnings beat this quarter:
Agnico Eagle Mines Limited (AEM - Free Report) , which is scheduled to release earnings on Jul 26, has an Earnings ESP of +3.84% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for AEM’s earnings for the second quarter is currently pegged at 54 cents.
Axalta Coating Systems Ltd. (AXTA - Free Report) , which is slated to release its earnings on Aug 1, has an Earnings ESP of +6.02%.
The consensus estimate for AXTA’s earnings for the second quarter is currently pegged at 39 cents. It currently carries a Zacks Rank #2.
Kinross Gold Corporation (KGC - Free Report) , which is scheduled to release earnings on Aug 2, has an Earnings ESP of +5.56% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for earnings for KGC for the second quarter is pegged at 9 cents.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.