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U.S. Steel (X) Earnings Miss Estimates in Q4, Revenues Top

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United States Steel Corporation (X - Free Report) logged a profit of $1,069 million or $3.75 per share in fourth-quarter 2021, surging from a profit of $49 million or 22 cents per share in the year-ago quarter.

Barring one-time items, adjusted earnings per share were $3.64 per share. The figure missed the Zacks Consensus Estimate of $4.56.
 
Revenues climbed around 119% year over year to $5,622 million in the reported quarter. It surpassed the Zacks Consensus Estimate of $5,483.7 million. The company benefited from a surge in prices and higher overall steel shipments in the quarter. Total steel shipments climbed around 18% year over year in the quarter.

 

United States Steel Corporation Price, Consensus and EPS Surprise

 

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 $890 million in the fourth quarter compared with a loss of $73 million in the year-ago quarter.

Steel shipments in the segment fell roughly 10% year over year to 2,032,000 tons and average realized price per ton in the unit was $1,432, up around 96% 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 $366 million in the quarter. Shipments were 559,000 tons while average realized price per ton was $1,490.

U.S. Steel Europe: The segment posted profits of $269 million, up from $36 million in the year-ago quarter. Shipments in the segment rose around 22% year over year to 1,028,000 tons. Average realized price per ton for the unit was $1,075, up around 65% year over year.

Tubular:  The segment posted a profit of $30 million against a loss of $32 million in the year-ago quarter. Shipments rose roughly 72% year over year to 127,000 tons. Average realized price per ton for the unit was $1,968, up roughly 55% year over year.

FY21 Results

Earnings for full-year 2021 were $14.88 per share compared with a loss of $5.92 per share a year ago. Net sales shot up 108% year over year to $20,275 million.

Financials

At the end of 2021, the company had cash and cash equivalents of $2,522 million, up around 27% year over year. Long-term debt fell roughly 18% year over year to $3,863 million.

The company repurchased shares worth $150 million during the fourth quarter under the $300 million stock buyback authorization announced in October 2021. Its board also authorized a new $500 million buyback program, which is expected to commence in the first quarter of 2022.

Outlook

The company noted that it entered 2022 from a position of strength and remains focused on continuing its disciplined approach to creating shareholder value. It expects 2022 to be another strong year for the company. Its balance sheet has been transformed and its capital allocation priorities have enhanced direct returns to shareholders, U.S. Steel noted.

Price Performance

The company’s shares are down 0.8% in the past year compared with the industry’s 28.5% rise.

 

Zacks Investment ResearchImage Source: Zacks Investment Research

 

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 Commercial Metals Company (CMC - Free Report) , Albemarle Corporation (ALB - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
 
Commercial Metals, sporting a Zacks Rank #1 (Strong Buy), has a projected earnings growth rate of 62% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 39.5% upward over the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 13.1%, on average. CMC has rallied around 68% in a year.

Albemarle, carrying a Zacks Rank #1, has an expected earnings growth rate of 51.3% for the current year. ALB's consensus estimate for the current year has been revised 5.4% upward over the past 60 days.

Albemarle beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 22.1%. ALB shares have gained around 24% in a year.

AdvanSix, carrying a Zacks Rank #1, has an expected earnings growth rate of 7.4% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 5.3% upward in the past 60 days.

AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied around 88% in a year.