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Cleveland-Cliffs (CLF) Tops Earnings and Sales Estimates in Q1
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Cleveland-Cliffs Inc. (CLF - Free Report) logged profits (attributable to the company’s shareholders) of $801 million or $1.50 per share in first-quarter 2022 compared with $41 million or 7 cents per share in the prior-year quarter. The success in the quarter was led by the renewal of its fixed price contacts in the past year.
Barring one-time items, adjusted earnings came in at $1.71 per share, beating the Zacks Consensus Estimate of $1.44.
Revenues increased 47.1% to $5,955 million in the quarter. The top line beat the Zacks Consensus Estimate of $5,521.7 million.
ClevelandCliffs Inc. Price, Consensus and EPS Surprise
The company reported Steelmaking revenues of $5.8 billion for the first quarter, up 47.8% year over year. Average net selling price per net ton of steel products was $1,446 for the quarter, up around 60.6% year over year. External sales volumes for steel products were roughly 3.6 million net tons, down around 12.2% year over year.
Financial Position
Cleveland-Cliffs ended the first quarter with cash and cash equivalents of $35 million, down from $110 million in the prior-year quarter. Long-term debt declined 12.3% year over year to $5,028 million at the end of the first quarter.
Net cash provided in operating activities was $533 million for first-quarter 2022.
Outlook
Cleveland-Cliffs now expects a full-year 2022 average selling price of $1,445 per net ton, up from the earlier guidance of $1,225 per net ton. The hike is led by higher than expected prices on renewals of fixed-price contracts resetting April 1, 2022, increased projected spreads between hot-rolled and cold-rolled steel and a higher futures curve. The company assumes that the U.S. hot-rolled coil price averages $1,300 per net ton for full-year 2022.
For 2022, the company expects to generate record levels of free cash flow.
Price Performance
Cleveland-Cliffs’ shares have rallied 53% in the past year compared with a 4.7% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Cleveland-Cliffs currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the basic materials space are The Mosaic Company (MOS - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Allegheny Technologies Incorporated (ATI - Free Report) .
Mosaic has a projected earnings growth rate of 143.5% for the current year. The Zacks Consensus Estimate for MOS' current-year earnings has been revised 39.7% upward in the past 60 days.
Mosaic’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, while missing once. MOS has a trailing four-quarter earnings surprise of roughly 3.7%, on average. MOS has rallied around 92% in a year and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
AdvanSix has a projected earnings growth rate of 54.7% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 43.6% upward in the past 60 days.
AdvanSix’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 23.6%. ASIX has surged 65.9% in a year. The company sports a Zacks Rank #1.
Allegheny, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 707.7% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 6.1% upward in the past 60 days.
Allegheny’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 16.6% over a year.
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Cleveland-Cliffs (CLF) Tops Earnings and Sales Estimates in Q1
Cleveland-Cliffs Inc. (CLF - Free Report) logged profits (attributable to the company’s shareholders) of $801 million or $1.50 per share in first-quarter 2022 compared with $41 million or 7 cents per share in the prior-year quarter. The success in the quarter was led by the renewal of its fixed price contacts in the past year.
Barring one-time items, adjusted earnings came in at $1.71 per share, beating the Zacks Consensus Estimate of $1.44.
Revenues increased 47.1% to $5,955 million in the quarter. The top line beat the Zacks Consensus Estimate of $5,521.7 million.
ClevelandCliffs Inc. Price, Consensus and EPS Surprise
ClevelandCliffs Inc. price-consensus-eps-surprise-chart | ClevelandCliffs Inc. Quote
Operational Highlights
The company reported Steelmaking revenues of $5.8 billion for the first quarter, up 47.8% year over year. Average net selling price per net ton of steel products was $1,446 for the quarter, up around 60.6% year over year. External sales volumes for steel products were roughly 3.6 million net tons, down around 12.2% year over year.
Financial Position
Cleveland-Cliffs ended the first quarter with cash and cash equivalents of $35 million, down from $110 million in the prior-year quarter. Long-term debt declined 12.3% year over year to $5,028 million at the end of the first quarter.
Net cash provided in operating activities was $533 million for first-quarter 2022.
Outlook
Cleveland-Cliffs now expects a full-year 2022 average selling price of $1,445 per net ton, up from the earlier guidance of $1,225 per net ton. The hike is led by higher than expected prices on renewals of fixed-price contracts resetting April 1, 2022, increased projected spreads between hot-rolled and cold-rolled steel and a higher futures curve. The company assumes that the U.S. hot-rolled coil price averages $1,300 per net ton for full-year 2022.
For 2022, the company expects to generate record levels of free cash flow.
Price Performance
Cleveland-Cliffs’ shares have rallied 53% in the past year compared with a 4.7% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Cleveland-Cliffs currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the basic materials space are The Mosaic Company (MOS - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Allegheny Technologies Incorporated (ATI - Free Report) .
Mosaic has a projected earnings growth rate of 143.5% for the current year. The Zacks Consensus Estimate for MOS' current-year earnings has been revised 39.7% upward in the past 60 days.
Mosaic’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, while missing once. MOS has a trailing four-quarter earnings surprise of roughly 3.7%, on average. MOS has rallied around 92% in a year and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
AdvanSix has a projected earnings growth rate of 54.7% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 43.6% upward in the past 60 days.
AdvanSix’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 23.6%. ASIX has surged 65.9% in a year. The company sports a Zacks Rank #1.
Allegheny, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 707.7% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 6.1% upward in the past 60 days.
Allegheny’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 16.6% over a year.