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U.S. Steel's (X) Earnings and Revenues Top Estimates in Q3
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United States Steel Corporation (X - Free Report) swung to a profit of $2,002 million or $6.97 per share in third-quarter 2021 from a loss of $234 million or $1.06 per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share were $5.36 per share. The figure trounced the Zacks Consensus Estimate of $4.85.
Revenues climbed around 155% year over year to $5,964 million in the reported quarter. It surpassed the Zacks Consensus Estimate of $5,725.4 million. The company benefited from strong steel shipments and higher prices in the quarter. Total steel shipments jumped around 37% year over year in the quarter.
United States Steel Corporation Price, Consensus and EPS Surprise
Flat-Rolled: The segment recorded a profit of $1,015 million in the third quarter compared with a loss of $159 million in the year-ago quarter.
Steel shipments in the segment rose roughly 8% year over year to 2,328,000 tons and average realized price per ton in the unit was $1,325, up around 86% year over year.
Mini Mill: The company added the segment after Jan 15, 2021 with the purchase of the remaining stake in Big River Steel. The segment recorded a profit of $424 million in the quarter. Shipments were 608,000 tons while average realized price per ton was $1,517.
U.S. Steel Europe: The segment posted profits of $394 million, up from $13 million in the year-ago quarter. Shipments in the segment rose around 35% year over year to 1,064,000 tons. Average realized price per ton for the unit was $1,143, up around 88% year over year.
Tubular: The segment posted breakeven results against a loss of $52 million in the year-ago quarter. Shipments rose roughly 73% year over year to 123,000 tons. Average realized price per ton for the unit was $1,702, up roughly 38% year over year.
Financials
At the end of the quarter, the company had cash and cash equivalents of $2,044 million, up around 21% year over year. Long-term debt fell roughly 8% year over year to $4,272 million.
The company also raised its quarterly dividend by 400% to 5 cents per share from the prior payout of a penny per share. It also announced a stock buyback program to repurchase up to $300 million of its outstanding common stock.
Outlook
The company noted that its balance sheet has been transformed and the cash flow generation of the business will allow it to fund its organic growth investments. U.S. Steel remains confident in the long-term value that its mini mill will create as it further broadens its competitive advantage to make sustainable and differentiated steel.
Price Performance
The company’s shares rallied 137.9% in the past a year, outperforming the industry’s 87.8% rise.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
U.S. Steel currently carries a Zacks Rank #3 (Hold).
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U.S. Steel's (X) Earnings and Revenues Top Estimates in Q3
United States Steel Corporation (X - Free Report) swung to a profit of $2,002 million or $6.97 per share in third-quarter 2021 from a loss of $234 million or $1.06 per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share were $5.36 per share. The figure trounced the Zacks Consensus Estimate of $4.85.
Revenues climbed around 155% year over year to $5,964 million in the reported quarter. It surpassed the Zacks Consensus Estimate of $5,725.4 million. The company benefited from strong steel shipments and higher prices in the quarter. Total steel shipments jumped around 37% year over year in the quarter.
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 $1,015 million in the third quarter compared with a loss of $159 million in the year-ago quarter.
Steel shipments in the segment rose roughly 8% year over year to 2,328,000 tons and average realized price per ton in the unit was $1,325, up around 86% year over year.
Mini Mill: The company added the segment after Jan 15, 2021 with the purchase of the remaining stake in Big River Steel. The segment recorded a profit of $424 million in the quarter. Shipments were 608,000 tons while average realized price per ton was $1,517.
U.S. Steel Europe: The segment posted profits of $394 million, up from $13 million in the year-ago quarter. Shipments in the segment rose around 35% year over year to 1,064,000 tons. Average realized price per ton for the unit was $1,143, up around 88% year over year.
Tubular: The segment posted breakeven results against a loss of $52 million in the year-ago quarter. Shipments rose roughly 73% year over year to 123,000 tons. Average realized price per ton for the unit was $1,702, up roughly 38% year over year.
Financials
At the end of the quarter, the company had cash and cash equivalents of $2,044 million, up around 21% year over year. Long-term debt fell roughly 8% year over year to $4,272 million.
The company also raised its quarterly dividend by 400% to 5 cents per share from the prior payout of a penny per share. It also announced a stock buyback program to repurchase up to $300 million of its outstanding common stock.
Outlook
The company noted that its balance sheet has been transformed and the cash flow generation of the business will allow it to fund its organic growth investments. U.S. Steel remains confident in the long-term value that its mini mill will create as it further broadens its competitive advantage to make sustainable and differentiated steel.
Price Performance
The company’s shares rallied 137.9% in the past a year, outperforming the industry’s 87.8% rise.
Zacks Rank & Key Picks
U.S. Steel currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Nutrien Ltd. (NTR - Free Report) , Methanex Corporation (MEOH - Free Report) and Steel Dynamics, Inc. (STLD - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Nutrien has an expected earnings growth rate of 180% for the current year. The stock has also rallied around 71% over a year.
Methanex has a projected earnings growth rate of 429% for the current year. The company’s shares have shot up around 49% in a year.
Steel Dynamics has a projected earnings growth rate of 477.5% for the current year. The company’s shares have surged around 107% in a year.