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U.S. Steel (X) Ups Q1 Earnings View on Healthy Demand & Prices
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United States Steel Corporation (X - Free Report) announced a revision to its first-quarter 2021 guidance. The company now expects adjusted earnings per share of $1.02 for the quarter, up from 61 cents mentioned earlier.
The adjusted net income for the first quarter is also revised to $265 million from $160 million stated previously and excludes the impacts of acquiring the remaining stake in Big River Steel and non-recurring refinancing costs related to balance sheet enhancements, which were carried out in the quarter. The expected adjusted EBITDA for the quarter remains at $540 million, excluding the impacts of the Big River Steel acquisition.
The company notes that strong market conditions and its well timed acquisition of Big River Steel are backing significant earnings growth. Healthy flat-rolled customer demand across most end-markets and flow-through of higher steel prices are leading to higher results from its Flat-rolled and U.S. Steel Europe segments, and the newly formed “Mini Mill” segment, which will reflect the performance of Big River Steel.
The company is benefiting from solid market fundamentals, low steel supply-chain inventories, continued consumer-driven demand and pent-up infrastructure demand. The company’s strategy of customer-centric Best of Both positions it with diversified operations, enhanced balance sheet, and the ability to capitalize on a “stronger for longer” market environment, per U.S. Steel.
Shares of U.S. Steel have surged 314.7% in the past year compared with a 167.7% rise of the industry.
Zacks Rank & Other Key Picks
U.S. Steel currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the basic materials space are Fortescue Metals Group Limited (FSUGY - Free Report) , Ashland Global Holdings Inc. (ASH - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .
Fortescue has a projected earnings growth rate of 107.8% for the current fiscal year. The company’s shares have surged 148.4% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ashland has an expected earnings growth rate of 83.9% for the current fiscal year. The company’s shares have gained 88.4% in the past year. It currently sports a Zacks Rank #1.
Impala has an expected earnings growth rate of 197.6% for the current fiscal year. The company’s shares have rallied 301.1% in the past year. It currently flaunts a Zacks Rank #1.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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U.S. Steel (X) Ups Q1 Earnings View on Healthy Demand & Prices
United States Steel Corporation (X - Free Report) announced a revision to its first-quarter 2021 guidance. The company now expects adjusted earnings per share of $1.02 for the quarter, up from 61 cents mentioned earlier.
The adjusted net income for the first quarter is also revised to $265 million from $160 million stated previously and excludes the impacts of acquiring the remaining stake in Big River Steel and non-recurring refinancing costs related to balance sheet enhancements, which were carried out in the quarter. The expected adjusted EBITDA for the quarter remains at $540 million, excluding the impacts of the Big River Steel acquisition.
The company notes that strong market conditions and its well timed acquisition of Big River Steel are backing significant earnings growth. Healthy flat-rolled customer demand across most end-markets and flow-through of higher steel prices are leading to higher results from its Flat-rolled and U.S. Steel Europe segments, and the newly formed “Mini Mill” segment, which will reflect the performance of Big River Steel.
The company is benefiting from solid market fundamentals, low steel supply-chain inventories, continued consumer-driven demand and pent-up infrastructure demand. The company’s strategy of customer-centric Best of Both positions it with diversified operations, enhanced balance sheet, and the ability to capitalize on a “stronger for longer” market environment, per U.S. Steel.
Shares of U.S. Steel have surged 314.7% in the past year compared with a 167.7% rise of the industry.
Zacks Rank & Other Key Picks
U.S. Steel currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the basic materials space are Fortescue Metals Group Limited (FSUGY - Free Report) , Ashland Global Holdings Inc. (ASH - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .
Fortescue has a projected earnings growth rate of 107.8% for the current fiscal year. The company’s shares have surged 148.4% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ashland has an expected earnings growth rate of 83.9% for the current fiscal year. The company’s shares have gained 88.4% in the past year. It currently sports a Zacks Rank #1.
Impala has an expected earnings growth rate of 197.6% for the current fiscal year. The company’s shares have rallied 301.1% in the past year. It currently flaunts a Zacks Rank #1.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>