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U.S. Steel's (X) Earnings Miss Estimates in Q2, Revenues Beat
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United States Steel Corporation (X - Free Report) logged a profit of $978 million or $3.42 per share in second-quarter 2022, down from a profit of $1,012 million or $3.53 per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share were $3.86 per share. The figure trailed the Zacks Consensus Estimate of $3.87. Our estimate for the quarter was $2.78.
Revenues rose around 25% year over year to $6,290 million in the reported quarter. It beat the Zacks Consensus Estimate of $5,808.6 million. The figure also compares to our estimate of $5,366.4 million.
The company benefited from higher prices across its segments in the quarter. Its overall shipments dropped around 0.7% year over year in the quarter to 4,183,000 tons, compared to the consensus estimate of 4,065,000 tons. The figure also compares to our estimate of 4,185,000 tons.
United States Steel Corporation Price, Consensus and EPS Surprise
Flat-Rolled: The segment recorded a profit of $777 million in the second quarter, up around 34% year over year.
Steel shipments in the segment rose roughly 2% year over year to 2,365,000 tons, compared to the consensus estimate of 2,324,000 tons. Average realized price per ton in the unit was $1,339, up around 24% year over year, compared to the consensus estimate of $1,345. These numbers compare to our estimate for shipments of 2,434,000 tons and average realized price per ton of $1,259.
Mini Mill: The segment recorded a profit of $270 million in the quarter, down around 5% year over year. Shipments were 615,000 tons, flat year over year, compared to the consensus estimate of 581,000 tons. Average realized price per ton was $1,331, up around 10% year over year, compared to the consensus estimate of $1,265. These compare to our estimate for shipments of 597,000 tons and average realized price per ton of $1,613.
U.S. Steel Europe: The segment posted profits of $280 million, up around 35% year over year. Shipments in the segment fell around 9% year over year to 1,067,000 tons, compared to the consensus estimate of 1,031,000 tons. Average realized price per ton for the unit was $1,217, up around 34% year over year, compared to the consensus estimate of $1,109. These compare to our estimate for shipments of 1,030,000 tons and average realized price per ton of $1,201.
Tubular: The segment posted a profit of $107 million in the year-ago quarter. Shipments rose roughly 30% year over year to 136,000 tons, compared to the consensus estimate of 128,000 tons. Average realized price per ton for the unit was $2,727, up roughly 67% year over year, compared to the consensus estimate of $2,393. These compare to our estimate for shipments of 124,000 tons and average realized price per ton of $1,004.
Financials
At the end of the quarter, the company had cash and cash equivalents of $3,035 million, up around 128% year over year. Long-term debt fell roughly 19% year over year to $3,869 million.
The company completed its $800 million stock buyback authorization and announced a new $500 million stock buyback authorization. It repurchased $400 million of its common stock during the second quarter.
Outlook
U.S. Steel said that demand in line pipe and energy is accelerating while some consumer-oriented markets like automotive and appliance remain softer. The company has demonstrated a commitment to achieve and maintain a strong balance sheet, a supportive debt maturity profile and a balanced approach to capital allocation, it noted.
Price Performance
The company’s shares are down 18% in the past year compared with the industry’s 23.3% decline.
Image 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 Cabot Corporation (CBT - Free Report) , ATI Inc. (ATI - Free Report) and Albemarle Corporation (ALB - Free Report) .
Cabot, currently carrying a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 22.5% for the current fiscal year. The Zacks Consensus Estimate for CBT's earnings for the current fiscal has been revised 0.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 33% over a year.
ATI, currently sporting a Zacks Rank #1, has a projected earnings growth rate of 1,069.2% for the current year. The Zacks Consensus Estimate for ATI's current-year earnings has been revised 12.5% upward in the past 60 days.
ATI’s earnings beat the Zacks Consensus Estimate in the last four quarters. It has a trailing four-quarter earnings surprise of roughly 128.9%, on average. ATI shares are up around 21% in a year.
Albemarle has a projected earnings growth rate of 241.8% for the current year. The Zacks Consensus Estimate for ALB’s current-year earnings has been revised 18% upward in the past 60 days.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 20%. ALB has gained roughly 15% in a year. The company flaunts a Zacks Rank #2.
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U.S. Steel's (X) Earnings Miss Estimates in Q2, Revenues Beat
United States Steel Corporation (X - Free Report) logged a profit of $978 million or $3.42 per share in second-quarter 2022, down from a profit of $1,012 million or $3.53 per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share were $3.86 per share. The figure trailed the Zacks Consensus Estimate of $3.87. Our estimate for the quarter was $2.78.
Revenues rose around 25% year over year to $6,290 million in the reported quarter. It beat the Zacks Consensus Estimate of $5,808.6 million. The figure also compares to our estimate of $5,366.4 million.
The company benefited from higher prices across its segments in the quarter. Its overall shipments dropped around 0.7% year over year in the quarter to 4,183,000 tons, compared to the consensus estimate of 4,065,000 tons. The figure also compares to our estimate of 4,185,000 tons.
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 $777 million in the second quarter, up around 34% year over year.
Steel shipments in the segment rose roughly 2% year over year to 2,365,000 tons, compared to the consensus estimate of 2,324,000 tons. Average realized price per ton in the unit was $1,339, up around 24% year over year, compared to the consensus estimate of $1,345. These numbers compare to our estimate for shipments of 2,434,000 tons and average realized price per ton of $1,259.
Mini Mill: The segment recorded a profit of $270 million in the quarter, down around 5% year over year. Shipments were 615,000 tons, flat year over year, compared to the consensus estimate of 581,000 tons. Average realized price per ton was $1,331, up around 10% year over year, compared to the consensus estimate of $1,265. These compare to our estimate for shipments of 597,000 tons and average realized price per ton of $1,613.
U.S. Steel Europe: The segment posted profits of $280 million, up around 35% year over year. Shipments in the segment fell around 9% year over year to 1,067,000 tons, compared to the consensus estimate of 1,031,000 tons. Average realized price per ton for the unit was $1,217, up around 34% year over year, compared to the consensus estimate of $1,109. These compare to our estimate for shipments of 1,030,000 tons and average realized price per ton of $1,201.
Tubular: The segment posted a profit of $107 million in the year-ago quarter. Shipments rose roughly 30% year over year to 136,000 tons, compared to the consensus estimate of 128,000 tons. Average realized price per ton for the unit was $2,727, up roughly 67% year over year, compared to the consensus estimate of $2,393. These compare to our estimate for shipments of 124,000 tons and average realized price per ton of $1,004.
Financials
At the end of the quarter, the company had cash and cash equivalents of $3,035 million, up around 128% year over year. Long-term debt fell roughly 19% year over year to $3,869 million.
The company completed its $800 million stock buyback authorization and announced a new $500 million stock buyback authorization. It repurchased $400 million of its common stock during the second quarter.
Outlook
U.S. Steel said that demand in line pipe and energy is accelerating while some consumer-oriented markets like automotive and appliance remain softer. The company has demonstrated a commitment to achieve and maintain a strong balance sheet, a supportive debt maturity profile and a balanced approach to capital allocation, it noted.
Price Performance
The company’s shares are down 18% in the past year compared with the industry’s 23.3% decline.
Image 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 Cabot Corporation (CBT - Free Report) , ATI Inc. (ATI - Free Report) and Albemarle Corporation (ALB - Free Report) .
Cabot, currently carrying a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 22.5% for the current fiscal year. The Zacks Consensus Estimate for CBT's earnings for the current fiscal has been revised 0.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 33% over a year.
ATI, currently sporting a Zacks Rank #1, has a projected earnings growth rate of 1,069.2% for the current year. The Zacks Consensus Estimate for ATI's current-year earnings has been revised 12.5% upward in the past 60 days.
ATI’s earnings beat the Zacks Consensus Estimate in the last four quarters. It has a trailing four-quarter earnings surprise of roughly 128.9%, on average. ATI shares are up around 21% in a year.
Albemarle has a projected earnings growth rate of 241.8% for the current year. The Zacks Consensus Estimate for ALB’s current-year earnings has been revised 18% upward in the past 60 days.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 20%. ALB has gained roughly 15% in a year. The company flaunts a Zacks Rank #2.