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Cleveland-Cliffs (CLF) Up 2.9% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Cleveland-Cliffs (CLF - Free Report) . Shares have added about 2.9% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Cleveland-Cliffs due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Cleveland-Cliffs' Q4 Earnings Beat, Revenues Miss
Cleveland-Cliffs’ 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.
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. The company 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.
Cleveland-Cliffs expects adjusted EBITDA to be significantly higher in the first quarter of 2024 than in the fourth quarter of 2023.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
The consensus estimate has shifted -42.73% due to these changes.
VGM Scores
Currently, Cleveland-Cliffs has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Cleveland-Cliffs has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Cleveland-Cliffs (CLF) Up 2.9% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Cleveland-Cliffs (CLF - Free Report) . Shares have added about 2.9% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Cleveland-Cliffs due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Cleveland-Cliffs' Q4 Earnings Beat, Revenues Miss
Cleveland-Cliffs’ 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.
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. The company 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.
Cleveland-Cliffs expects adjusted EBITDA to be significantly higher in the first quarter of 2024 than in the fourth quarter of 2023.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
The consensus estimate has shifted -42.73% due to these changes.
VGM Scores
Currently, Cleveland-Cliffs has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Cleveland-Cliffs has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.