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Cleveland-Cliffs' (CLF) Q4 Earnings Beat, Revenues Miss
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Cleveland-Cliffs Inc.’s (CLF - Free Report) fourth-quarter 2023 adjusted loss was 5 cents per share compared with a loss of 40 cents in the prior-year quarter. It was narrower than the Zacks Consensus Estimate of loss of 7 cents.
Revenues increased around 1.3% to $5,112 million from the year-ago quarter. The top line, however, missed the Zacks Consensus Estimate of $5,161.9 million.
Cleveland-Cliffs Inc. Price, Consensus and EPS Surprise
The company reported Steelmaking revenues of $4,954 million in the fourth quarter, up around 1.1% year over year.
The average net selling price per net ton of steel products was $1,093 in the quarter, down around 5.4% year over year. It was below our estimate of $1,248.77. External sales volumes for steel products were roughly 4.04 million net tons, up around 5.2% year over year. It was ahead of our estimate of 4.02 million net tons.
FY23 Results
Full-year 2023 adjusted earnings were $1.07 per share compared with $2.74 a year ago. Revenues declined roughly 4.3% to $22 billion in the full year. CLF registered record steel shipments of 16.4 million net tons in 2023, including record automotive shipments on strong demand.
Financial Position
Cleveland-Cliffs ended the fourth quarter with cash and cash equivalents of $198 million, up from $26 million in the prior-year quarter. Long-term debt declined 26.1% year over year to $3,137 million.
Net cash provided by operating activities was $652 million in fourth-quarter 2023.
Outlook
The company expects steel shipment of 16.5 million net tons for 2024, up from 16.4 million net tons in 2023. Steel unit costs are predicted to be down by about $30 per net ton, resulting in an adjusted EBITDA benefit of almost $500 million over 2023 levels. Capital expenditures for 2024 are forecast in the range of $675 million to $725 million.
CLF expects adjusted EBITDA to be significantly higher in the first quarter of 2024 than in the fourth quarter of 2023.
Price Performance
Shares of CLF are down 11.5% in the past year compared with a 5.9% decline of its industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Cleveland-Cliffs currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the basic materials space include The Andersons Inc. (ANDE - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Alpha Metallurgical Resources Inc. (AMR - Free Report) .
Andersons currently carries a Zacks Rank #1 (Strong Buy). ANDE beat the Zacks Consensus Estimate in three of the last four quarters while missing once. It delivered a trailing four-quarter earnings surprise of 32.8%, on average. The company’s shares have surged 47.5% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology currently carries a Zacks Rank #1. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 12.2%. The company’s shares have soared 34.2% in the past year.
The Zacks Consensus Estimate for AMR’s current-year earnings has been revised upward by 69% in the past 60 days. It currently carries a Zacks Rank #1. AMR delivered a trailing four-quarter earnings surprise of roughly 9.6%, on average. AMR shares are up around 140.2% in a year.
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Cleveland-Cliffs' (CLF) Q4 Earnings Beat, Revenues Miss
Cleveland-Cliffs Inc.’s (CLF - Free Report) fourth-quarter 2023 adjusted loss was 5 cents per share compared with a loss of 40 cents in the prior-year quarter. It was narrower than the Zacks Consensus Estimate of loss of 7 cents.
Revenues increased around 1.3% to $5,112 million from the year-ago quarter. The top line, however, missed the Zacks Consensus Estimate of $5,161.9 million.
Cleveland-Cliffs Inc. Price, Consensus and EPS Surprise
Cleveland-Cliffs Inc. price-consensus-eps-surprise-chart | Cleveland-Cliffs Inc. Quote
Operational Highlights
The company reported Steelmaking revenues of $4,954 million in the fourth quarter, up around 1.1% year over year.
The average net selling price per net ton of steel products was $1,093 in the quarter, down around 5.4% year over year. It was below our estimate of $1,248.77. External sales volumes for steel products were roughly 4.04 million net tons, up around 5.2% year over year. It was ahead of our estimate of 4.02 million net tons.
FY23 Results
Full-year 2023 adjusted earnings were $1.07 per share compared with $2.74 a year ago. Revenues declined roughly 4.3% to $22 billion in the full year. CLF registered record steel shipments of 16.4 million net tons in 2023, including record automotive shipments on strong demand.
Financial Position
Cleveland-Cliffs ended the fourth quarter with cash and cash equivalents of $198 million, up from $26 million in the prior-year quarter. Long-term debt declined 26.1% year over year to $3,137 million.
Net cash provided by operating activities was $652 million in fourth-quarter 2023.
Outlook
The company expects steel shipment of 16.5 million net tons for 2024, up from 16.4 million net tons in 2023. Steel unit costs are predicted to be down by about $30 per net ton, resulting in an adjusted EBITDA benefit of almost $500 million over 2023 levels. Capital expenditures for 2024 are forecast in the range of $675 million to $725 million.
CLF expects adjusted EBITDA to be significantly higher in the first quarter of 2024 than in the fourth quarter of 2023.
Price Performance
Shares of CLF are down 11.5% in the past year compared with a 5.9% decline of its industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Cleveland-Cliffs currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the basic materials space include The Andersons Inc. (ANDE - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Alpha Metallurgical Resources Inc. (AMR - Free Report) .
Andersons currently carries a Zacks Rank #1 (Strong Buy). ANDE beat the Zacks Consensus Estimate in three of the last four quarters while missing once. It delivered a trailing four-quarter earnings surprise of 32.8%, on average. The company’s shares have surged 47.5% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology currently carries a Zacks Rank #1. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 12.2%. The company’s shares have soared 34.2% in the past year.
The Zacks Consensus Estimate for AMR’s current-year earnings has been revised upward by 69% in the past 60 days. It currently carries a Zacks Rank #1. AMR delivered a trailing four-quarter earnings surprise of roughly 9.6%, on average. AMR shares are up around 140.2% in a year.