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Cleveland-Cliffs (CLF) Earnings & Revenues Lag Estimates in Q1
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Cleveland-Cliffs Inc. (CLF - Free Report) reported a net loss of $53 million or 14 cents per share in the first quarter of 2024, compared with a loss of $42 million or 11 cents a year ago.
Adjusted earnings were 18 cents per share against a loss of 11 cents in the same quarter of the previous year. The figure fell short of the Zacks Consensus Estimate of 19 cents.
Revenues dropped around 1.8% from the year-ago quarter’s levels to $5,199 million. The top line missed the Zacks Consensus Estimate of $5,293.6 million.
Cleveland-Cliffs Inc. Price, Consensus and EPS Surprise
The company reported Steelmaking revenues of $5,027 million in the first quarter, down around 2% year over year.
The average net selling price per net ton of steel products was $1,175 in the quarter, up around 4.1% year over year. It was below our estimate of $1,200. External sales volumes for steel products were nearly 3.94 million net tons, down around 3.5% year over year. It was below our estimate of 4.08 million net tons.
Financial Position
Cleveland-Cliffs ended the first quarter with cash and cash equivalents of $30 million, down from $59 million in the prior-year quarter. Long-term debt declined 19.6% year over year to $3,664 million.
Net cash provided by operating activities was $142 million in first-quarter 2024.
Outlook
The company maintained its 2024 guidance, projecting steel shipment volumes of 16.5 million net tons. It also anticipates a $30 reduction per net ton in steel unit costs, resulting in an expected $500 million benefit in Adjusted EBITDA compared to 2023. The company estimates capital expenditures in the range of $675-$725 million.
Price Performance
Shares of CLF are up 21.5% in the past year compared with a 9.9% rise of its industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Cleveland-Cliffs currently carries a Zacks Rank #3 (Hold).
The consensus estimate for GFI’s current year earnings is pegged at $1.53 per share, indicating a 64.5% year-over-year increase. The Zacks Consensus Estimate for GFI’s current-year earnings has been revised upward by 33% in the past 60 days. The company’s shares have increased 9.9% in the past year.
The consensus estimate for CRS’ current fiscal year earnings is pegged at $3.96 per share, indicating a year-over-year surge of 247.37%. CRS beat on earnings in each of the last four quarters, delivering an average surprise of 12.2%. The company’s shares have risen 68% in the past year.
The consensus estimate for ECL’s current year earnings is pegged at $6.42 per share, indicating a year-over-year surge of 23.22%. ECL beat on earnings in each of the last four quarters, delivering an average surprise of 1.7%. The company’s shares have rallied 33.7% in the past year.
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Cleveland-Cliffs (CLF) Earnings & Revenues Lag Estimates in Q1
Cleveland-Cliffs Inc. (CLF - Free Report) reported a net loss of $53 million or 14 cents per share in the first quarter of 2024, compared with a loss of $42 million or 11 cents a year ago.
Adjusted earnings were 18 cents per share against a loss of 11 cents in the same quarter of the previous year. The figure fell short of the Zacks Consensus Estimate of 19 cents.
Revenues dropped around 1.8% from the year-ago quarter’s levels to $5,199 million. The top line missed the Zacks Consensus Estimate of $5,293.6 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 $5,027 million in the first quarter, down around 2% year over year.
The average net selling price per net ton of steel products was $1,175 in the quarter, up around 4.1% year over year. It was below our estimate of $1,200. External sales volumes for steel products were nearly 3.94 million net tons, down around 3.5% year over year. It was below our estimate of 4.08 million net tons.
Financial Position
Cleveland-Cliffs ended the first quarter with cash and cash equivalents of $30 million, down from $59 million in the prior-year quarter. Long-term debt declined 19.6% year over year to $3,664 million.
Net cash provided by operating activities was $142 million in first-quarter 2024.
Outlook
The company maintained its 2024 guidance, projecting steel shipment volumes of 16.5 million net tons. It also anticipates a $30 reduction per net ton in steel unit costs, resulting in an expected $500 million benefit in Adjusted EBITDA compared to 2023. The company estimates capital expenditures in the range of $675-$725 million.
Price Performance
Shares of CLF are up 21.5% in the past year compared with a 9.9% rise of its industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Cleveland-Cliffs currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Gold Fields Limited (GFI - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and Carpenter Technology Corporation (CRS - Free Report) and Ecolab Inc. (ECL - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for GFI’s current year earnings is pegged at $1.53 per share, indicating a 64.5% year-over-year increase. The Zacks Consensus Estimate for GFI’s current-year earnings has been revised upward by 33% in the past 60 days. The company’s shares have increased 9.9% in the past year.
The consensus estimate for CRS’ current fiscal year earnings is pegged at $3.96 per share, indicating a year-over-year surge of 247.37%. CRS beat on earnings in each of the last four quarters, delivering an average surprise of 12.2%. The company’s shares have risen 68% in the past year.
The consensus estimate for ECL’s current year earnings is pegged at $6.42 per share, indicating a year-over-year surge of 23.22%. ECL beat on earnings in each of the last four quarters, delivering an average surprise of 1.7%. The company’s shares have rallied 33.7% in the past year.