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U.S. Steel (X) to Post Q1 Earnings: What's in the Cards?
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United States Steel Corporation (X - Free Report) is scheduled to come up with its first-quarter 2021 results after the bell on Apr 29. Strong end-market demand and higher steel prices are likely to have driven its first-quarter results. The company is also expected to have benefited from its actions to improve cost and operating performance in the quarter.
The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 21.6%. It delivered an earnings surprise of roughly 62% in the last reported quarter.
Shares of U.S. Steel are up 225.7% over a year, compared with the industry’s rise of 154.8%.
Let’s see how things are shaping up for this announcement.
Zacks Model
Our proven model predicts an earnings beat for U.S. Steel this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat.
Earnings ESP: Earnings ESP for U.S. Steel is +29.67%. The Zacks Consensus Estimate for the first quarter is currently pegged at 91 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: U.S. Steel currently carries a Zacks Rank #2.
What do the Estimates Say?
U.S. Steel, last month, issued its guidance for the first quarter. It expects adjusted earnings per share of $1.02 for the quarter. It also sees adjusted net income for the first quarter to be $265 million. The company also projects adjusted EBITDA to be $540 million, excluding the impacts of the Big River Steel acquisition.
The Zacks Consensus Estimate for revenues for U.S. Steel for the first quarter is currently pinned at $3,879 million, indicating a 41.2% year-over-year rise.
Moreover, the Zacks Consensus Estimate for shipments for the company’s Flat-Rolled unit for the quarter currently stands at 2,363,000 tons, reflecting a 4.7% sequential rise. The consensus estimate for average realized price per ton in the unit stands at $937, suggesting a 28.2% sequential increase.
The Zacks Consensus Estimate for shipments for U.S. Steel Europe segment is pegged at 975,000 tons, indicating a 16% sequential rise. The same for average realized price per ton in the unit stands at $762, calling for a 16.9% sequential increase.
For the Tubular segment, the consensus estimate for shipments is pegged at 95,000 tons, reflecting a 28.4% sequential rise. The same for average realized price per ton in the unit stands at $1,297, calling for a 2.4% sequential increase.
Some Factors at Play
The company’s first-quarter results are likely to have benefited from strong demand across end markets, higher domestic steel prices, the Big River Steel buyout and its efforts to improve operation efficiency and reduce costs.
U.S. Steel, last month, said that it benefited from solid market fundamentals, low steel supply-chain inventories, continued consumer-driven demand and pent-up infrastructure demand. Strong market conditions and the Big River Steel acquisition backed significant earnings growth. Healthy flat-rolled customer demand across most end-markets and flow-through of higher steel prices also contributed to higher results from its Flat-rolled and U.S. Steel Europe segments.
Meanwhile, U.S. steel prices are on a tear driven by an upturn in demand, supply shortages and higher raw material costs. Prices have hit record levels after plunging to pandemic-induced multi-year lows in August 2020. The benchmark hot-rolled coil (“HRC”) prices started to recover in September 2020, and the bull run continues this year. HRC prices zoomed past $1,300 per short ton in March 2021 amid tight supply and surging demand.
As such, higher domestic steel prices are likely to have boosted the company’s selling prices and supported its bottom line in the to-be-reported quarter.
United States Steel Corporation Price and EPS Surprise
Here are some companies in the basic materials space you may want to consider as our model shows they too have the right combination of elements to post an earnings beat this quarter:
The Mosaic Company (MOS - Free Report) , scheduled to release earnings on May 3, has an Earnings ESP of +9.00% and carries a Zacks Rank #3.
CF Industries Holdings, Inc. (CF - Free Report) , scheduled to release earnings on May 5, has an Earnings ESP of +38.03% and carries a Zacks Rank #3.
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U.S. Steel (X) to Post Q1 Earnings: What's in the Cards?
United States Steel Corporation (X - Free Report) is scheduled to come up with its first-quarter 2021 results after the bell on Apr 29. Strong end-market demand and higher steel prices are likely to have driven its first-quarter results. The company is also expected to have benefited from its actions to improve cost and operating performance in the quarter.
The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 21.6%. It delivered an earnings surprise of roughly 62% in the last reported quarter.
Shares of U.S. Steel are up 225.7% over a year, compared with the industry’s rise of 154.8%.
Let’s see how things are shaping up for this announcement.
Zacks Model
Our proven model predicts an earnings beat for U.S. Steel this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat.
Earnings ESP: Earnings ESP for U.S. Steel is +29.67%. The Zacks Consensus Estimate for the first quarter is currently pegged at 91 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: U.S. Steel currently carries a Zacks Rank #2.
What do the Estimates Say?
U.S. Steel, last month, issued its guidance for the first quarter. It expects adjusted earnings per share of $1.02 for the quarter. It also sees adjusted net income for the first quarter to be $265 million. The company also projects adjusted EBITDA to be $540 million, excluding the impacts of the Big River Steel acquisition.
The Zacks Consensus Estimate for revenues for U.S. Steel for the first quarter is currently pinned at $3,879 million, indicating a 41.2% year-over-year rise.
Moreover, the Zacks Consensus Estimate for shipments for the company’s Flat-Rolled unit for the quarter currently stands at 2,363,000 tons, reflecting a 4.7% sequential rise. The consensus estimate for average realized price per ton in the unit stands at $937, suggesting a 28.2% sequential increase.
The Zacks Consensus Estimate for shipments for U.S. Steel Europe segment is pegged at 975,000 tons, indicating a 16% sequential rise. The same for average realized price per ton in the unit stands at $762, calling for a 16.9% sequential increase.
For the Tubular segment, the consensus estimate for shipments is pegged at 95,000 tons, reflecting a 28.4% sequential rise. The same for average realized price per ton in the unit stands at $1,297, calling for a 2.4% sequential increase.
Some Factors at Play
The company’s first-quarter results are likely to have benefited from strong demand across end markets, higher domestic steel prices, the Big River Steel buyout and its efforts to improve operation efficiency and reduce costs.
U.S. Steel, last month, said that it benefited from solid market fundamentals, low steel supply-chain inventories, continued consumer-driven demand and pent-up infrastructure demand. Strong market conditions and the Big River Steel acquisition backed significant earnings growth. Healthy flat-rolled customer demand across most end-markets and flow-through of higher steel prices also contributed to higher results from its Flat-rolled and U.S. Steel Europe segments.
Meanwhile, U.S. steel prices are on a tear driven by an upturn in demand, supply shortages and higher raw material costs. Prices have hit record levels after plunging to pandemic-induced multi-year lows in August 2020. The benchmark hot-rolled coil (“HRC”) prices started to recover in September 2020, and the bull run continues this year. HRC prices zoomed past $1,300 per short ton in March 2021 amid tight supply and surging demand.
As such, higher domestic steel prices are likely to have boosted the company’s selling prices and supported its bottom line in the to-be-reported quarter.
United States Steel Corporation Price and EPS Surprise
United States Steel Corporation price-eps-surprise | United States Steel Corporation Quote
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows they too have the right combination of elements to post an earnings beat this quarter:
AdvanSix Inc. (ASIX - Free Report) , scheduled to release earnings on Apr 30, has an Earnings ESP of +7.69% and carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Mosaic Company (MOS - Free Report) , scheduled to release earnings on May 3, has an Earnings ESP of +9.00% and carries a Zacks Rank #3.
CF Industries Holdings, Inc. (CF - Free Report) , scheduled to release earnings on May 5, has an Earnings ESP of +38.03% and carries a Zacks Rank #3.
Zacks' Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.
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