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U.S. Steel's (X) Q2 Earnings and Revenues Top Estimates
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United States Steel Corporation (X - Free Report) reported a profit of $477 million or $1.89 per share for second-quarter 2023, down from a profit of $978 million or $3.42 per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share were $1.92 per share, down from $3.89 a year ago. The figure, however, topped the Zacks Consensus Estimate of $1.86.
Revenues fell around 20% year over year to $5,008 million in the reported quarter but beat the Zacks Consensus Estimate of $4,942.8 million.
The company reported an EBIT of $564 million for the quarter. It also reported a total shipment of 3,967,000 tons, falling short of our estimate of 4,064,000 tons.
United States Steel Corporation Price, Consensus and EPS Surprise
Flat-Rolled: The segment recorded an EBIT of $231 million in the reported quarter, compared with an EBIT of $793 million a year ago.
Steel shipments in the segment went down roughly 5% year over year to 2,235,000 tons. Average realized price per ton in the unit was $1,088, down around 19% year over year. It also lagged our estimate of $1,098.
Mini Mill: The segment recorded a profit of $132 million in the quarter, down from a profit of $270 million in the year-ago quarter. Shipments were 587,000 tons, down around 5% year over year. Average realized price per ton was $1,011, down around 24% year over year. It also lagged our estimate of $1,129.
U.S. Steel Europe: The segment posted a profit of $72 million compared with a profit of $280 million in the year-ago quarter. Shipments in the segment fell around 3% year over year to 1,034,000 tons. Average realized price per ton for the unit was $965, down around 21% year over year. It was above our estimate of $913.
Tubular: The segment posted a profit of $157 million in the reported quarter, up from a profit of $107 million a year ago. Shipments fell roughly 18% year over year to 111,000 tons. Average realized price per ton for the unit was $3,493, up roughly 28% year over year. It lagged our estimate of $3,565.
Financials
At the end of the quarter, the company's cash and cash equivalents were $3,117 million, showing an increase of 0.5% compared to the previous year. Long-term debt rose about 7% year over year, reaching $4,153 million.
During the quarter, the company generated $713 million in cash from its operations. Additionally, it had free cash flow of $101 million.
Outlook
With a focus on supporting domestic supply chains and advanced manufacturing in the United States, U.S. Steel aims to sustain its competitive advantages and continue generating growth and returns for stockholders. Overall, U.S. Steel remains optimistic, expecting continued growth and returns for shareholders while remaining on track with its “Best for All” strategy.
Price Performance
The company’s shares have risen 15.3% in the past year compared with the industry’s 51.5% rise.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
U.S. Steel currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space include Livent Corporation and Carpenter Technology Corporation (CRS - Free Report) , both sporting a Zacks Rank #1 (Strong Buy), and PPG Industries, Inc. (PPG - Free Report) , carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for LTHM’s current-year earnings has been revised 14% upward in the past 90 days. LTHM beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 22%. The company’s shares have gained 2.2% in the past year.
The earnings estimate for CRS’s current year is pegged at $1.04, indicating year-over-year growth of 198%. CRS beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 30.9%. The company’s shares have rallied 89.2% in the past year.
The Zacks Consensus Estimate for PPG’s current-year earnings has been revised 6.8% upward in the past 60 days. PPG beat the Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 7.3% on average. The company’s shares have risen roughly 11.1% in the past year.
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U.S. Steel's (X) Q2 Earnings and Revenues Top Estimates
United States Steel Corporation (X - Free Report) reported a profit of $477 million or $1.89 per share for second-quarter 2023, down from a profit of $978 million or $3.42 per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share were $1.92 per share, down from $3.89 a year ago. The figure, however, topped the Zacks Consensus Estimate of $1.86.
Revenues fell around 20% year over year to $5,008 million in the reported quarter but beat the Zacks Consensus Estimate of $4,942.8 million.
The company reported an EBIT of $564 million for the quarter. It also reported a total shipment of 3,967,000 tons, falling short of our estimate of 4,064,000 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 an EBIT of $231 million in the reported quarter, compared with an EBIT of $793 million a year ago.
Steel shipments in the segment went down roughly 5% year over year to 2,235,000 tons. Average realized price per ton in the unit was $1,088, down around 19% year over year. It also lagged our estimate of $1,098.
Mini Mill: The segment recorded a profit of $132 million in the quarter, down from a profit of $270 million in the year-ago quarter. Shipments were 587,000 tons, down around 5% year over year. Average realized price per ton was $1,011, down around 24% year over year. It also lagged our estimate of $1,129.
U.S. Steel Europe: The segment posted a profit of $72 million compared with a profit of $280 million in the year-ago quarter. Shipments in the segment fell around 3% year over year to 1,034,000 tons. Average realized price per ton for the unit was $965, down around 21% year over year. It was above our estimate of $913.
Tubular: The segment posted a profit of $157 million in the reported quarter, up from a profit of $107 million a year ago. Shipments fell roughly 18% year over year to 111,000 tons. Average realized price per ton for the unit was $3,493, up roughly 28% year over year. It lagged our estimate of $3,565.
Financials
At the end of the quarter, the company's cash and cash equivalents were $3,117 million, showing an increase of 0.5% compared to the previous year. Long-term debt rose about 7% year over year, reaching $4,153 million.
During the quarter, the company generated $713 million in cash from its operations. Additionally, it had free cash flow of $101 million.
Outlook
With a focus on supporting domestic supply chains and advanced manufacturing in the United States, U.S. Steel aims to sustain its competitive advantages and continue generating growth and returns for stockholders. Overall, U.S. Steel remains optimistic, expecting continued growth and returns for shareholders while remaining on track with its “Best for All” strategy.
Price Performance
The company’s shares have risen 15.3% in the past year compared with the industry’s 51.5% rise.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
U.S. Steel currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space include Livent Corporation and Carpenter Technology Corporation (CRS - Free Report) , both sporting a Zacks Rank #1 (Strong Buy), and PPG Industries, Inc. (PPG - Free Report) , carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for LTHM’s current-year earnings has been revised 14% upward in the past 90 days. LTHM beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 22%. The company’s shares have gained 2.2% in the past year.
The earnings estimate for CRS’s current year is pegged at $1.04, indicating year-over-year growth of 198%. CRS beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 30.9%. The company’s shares have rallied 89.2% in the past year.
The Zacks Consensus Estimate for PPG’s current-year earnings has been revised 6.8% upward in the past 60 days. PPG beat the Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 7.3% on average. The company’s shares have risen roughly 11.1% in the past year.