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Higher Prices to Drive U.S. Steel's (X) Flat-Rolled Unit in Q1
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United States Steel Corporation (X - Free Report) provided guidance for the first quarter of 2024, anticipating adjusted net earnings per share between 80 cents and 84 cents and adjusted EBITDA of nearly $425 million.
U.S. Steel underscored its dedication to operational efficiency and advancing its merger with Nippon Steel Corporation while commenting on the forecast. The company highlighted favorable steel demand conditions, strong operational performance and the unwavering commitment of its workforce to customer satisfaction. The North American Flat-Rolled segment benefits from its diverse market presence, sustaining a robust order backlog.
The Mini Mill segment is poised for improved results driven by higher-priced spot orders. In contrast, the European segment is expected to witness enhanced EBITDA propelled by commercial and energy factors alongside effective cost management. However, the Tubular segment faces headwinds from softer demand and pricing pressures.
Strategic investments, including the second-quarter 2024 launch of the Big River Steel dual coating line and the new Big River 2 mini mill in late 2024, were emphasized, reflecting the company's dedication to innovation and expansion.
United States Steel Corporation Price and Consensus
The Flat-Rolled segment’s adjusted EBITDA is anticipated to surpass the previous quarter’s figure, supported by increased spot steel prices and tailwinds from fixed-priced contracts for 2024, despite challenges from seasonal mining operations. The Mini Mill segment is forecast to nearly double its adjusted EBITDA, driven by higher selling prices, though partially offset by increased raw material costs and construction-related expenses for new facilities.
The European segment is projected to see improved EBITDA due to higher steel prices, reduced energy costs and improved management efficiencies. The Tubular segment is expected to witness a decline in adjusted EBITDA, attributed to lower selling prices and decreased shipment volumes amid stagnant rig counts and softened natural gas demand.
The U.S. Steel’s shares have rallied 56% in the past year compared with the industry’s 17% rise.
Image Source: Zacks Investment Research
In the fourth quarter of 2023, U.S. Steel posted adjusted earnings per share of 67 cents, down from 89 cents the previous year but beating the Zacks Consensus Estimate of 25 cents. Despite a 4.5% year-over-year decline, quarterly revenues of $4,144 million surpassed the Zacks Consensus Estimate of $3,702.1 million.
Zacks Rank & Key Picks
U.S. Steel currently carries a Zacks Rank #3 (Hold).
The consensus estimate for CRS’ current fiscal year earnings is pegged at $4 per share, indicating a year-over-year surge of 250.9%. CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 12.2%. The company’s shares have increased 63% in the past year.
Ecolab has a projected earnings growth rate of 22.65% for the current year. The Zacks Consensus Estimate for ECL’s current-year earnings has been revised upward by 5.4% in the past 60 days. ECL topped the consensus estimate in each of the last four quarters, with the average earnings surprise being 1.7%. The company’s shares have rallied 46% in the past year.
The consensus estimate for HWKN’s current fiscal year earnings is pegged at $3.61 per share, indicating a 26% year-over-year rise. HWKN beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 30.6%. The company’s shares have surged 81.3% in the past year.
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Higher Prices to Drive U.S. Steel's (X) Flat-Rolled Unit in Q1
United States Steel Corporation (X - Free Report) provided guidance for the first quarter of 2024, anticipating adjusted net earnings per share between 80 cents and 84 cents and adjusted EBITDA of nearly $425 million.
U.S. Steel underscored its dedication to operational efficiency and advancing its merger with Nippon Steel Corporation while commenting on the forecast. The company highlighted favorable steel demand conditions, strong operational performance and the unwavering commitment of its workforce to customer satisfaction. The North American Flat-Rolled segment benefits from its diverse market presence, sustaining a robust order backlog.
The Mini Mill segment is poised for improved results driven by higher-priced spot orders. In contrast, the European segment is expected to witness enhanced EBITDA propelled by commercial and energy factors alongside effective cost management. However, the Tubular segment faces headwinds from softer demand and pricing pressures.
Strategic investments, including the second-quarter 2024 launch of the Big River Steel dual coating line and the new Big River 2 mini mill in late 2024, were emphasized, reflecting the company's dedication to innovation and expansion.
United States Steel Corporation Price and Consensus
United States Steel Corporation price-consensus-chart | United States Steel Corporation Quote
The Flat-Rolled segment’s adjusted EBITDA is anticipated to surpass the previous quarter’s figure, supported by increased spot steel prices and tailwinds from fixed-priced contracts for 2024, despite challenges from seasonal mining operations. The Mini Mill segment is forecast to nearly double its adjusted EBITDA, driven by higher selling prices, though partially offset by increased raw material costs and construction-related expenses for new facilities.
The European segment is projected to see improved EBITDA due to higher steel prices, reduced energy costs and improved management efficiencies. The Tubular segment is expected to witness a decline in adjusted EBITDA, attributed to lower selling prices and decreased shipment volumes amid stagnant rig counts and softened natural gas demand.
The U.S. Steel’s shares have rallied 56% in the past year compared with the industry’s 17% rise.
Image Source: Zacks Investment Research
In the fourth quarter of 2023, U.S. Steel posted adjusted earnings per share of 67 cents, down from 89 cents the previous year but beating the Zacks Consensus Estimate of 25 cents. Despite a 4.5% year-over-year decline, quarterly revenues of $4,144 million surpassed the Zacks Consensus Estimate of $3,702.1 million.
Zacks Rank & Key Picks
U.S. Steel currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Carpenter Technology Corporation (CRS - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and Ecolab Inc. (ECL - Free Report) and Hawkins, Inc. (HWKN - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for CRS’ current fiscal year earnings is pegged at $4 per share, indicating a year-over-year surge of 250.9%. CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 12.2%. The company’s shares have increased 63% in the past year.
Ecolab has a projected earnings growth rate of 22.65% for the current year. The Zacks Consensus Estimate for ECL’s current-year earnings has been revised upward by 5.4% in the past 60 days. ECL topped the consensus estimate in each of the last four quarters, with the average earnings surprise being 1.7%. The company’s shares have rallied 46% in the past year.
The consensus estimate for HWKN’s current fiscal year earnings is pegged at $3.61 per share, indicating a 26% year-over-year rise. HWKN beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 30.6%. The company’s shares have surged 81.3% in the past year.