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U.S. Steel (X) Stock Plunges 19% on Q1 Earnings, Revenue Miss
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United States Steel Corp. (X - Free Report) just released its first quarter fiscal 2017 financial results, posting earnings of a loss of 83 cents per share and revenues of $2.73. billion. Currently, X is a Zacks Rank #1 (Strong Buy), and is down 19.45% to $25.06 per share in trading shortly after its earnings report was released.
Missed earnings estimates. The company posted earnings of a loss of 83 cents per share, missing the Zacks Consensus Estimate of 30 cents per share. This number excludes 20 cents from non-recurring items.
Missed revenue estimates. The company saw revenue figures of $2.73 billion, lagging behind our consensus estimate of $2.921 billion and declining 16.7% year-over-year
In Q1, U.S. Steel’s flat-rolled segment declined significantly compared to the fourth quarter, coming in at a loss of $90 million. This was primarily due to higher raw material costs, increased planned outage costs, seasonally lower results from our mining operations, and restart costs associated with the Granite City hot strip mill and its Keetac iron ore mine.
Looking ahead, U.S. Steel expects 2017 net earnings of roughly $260 million, or $1.50 per share, and adjusted EBITDA of roughly $1.1 billion. Results for the company’s Flat-Rolled, European, and Tubular segments should be higher than 2016 if market condition remain at current levels.
U. S. Steel Chief Executive Officer Mario Longhi said, "While our segment results improved by over $200 million compared with the first quarter of 2016, operating challenges at our Flat-Rolled facilities prevented us from benefiting fully from improved market conditions. However, we continue to be encouraged by the strength of our European business and we are also seeing improving energy markets.”
Here’s a graph that looks at United States Steel’s price, consensus, and EPS surprise:
United States Steel Corporation Price, Consensus and EPS Surprise
United States Steel manufactures and sells a variety of steel mill products, coke and taconite pellets. Primary steel operations are the Gary (Indiana) Works, the Fairfield (Alabama) Works near Birmingham, the Mon Valley Works (which includes the Edgar Thomson steelmaking and Irvin finishing operations) on the Monongahela River near Pittsburgh, and U. S. Steel Kosice in the Slovak Republic.
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U.S. Steel (X) Stock Plunges 19% on Q1 Earnings, Revenue Miss
United States Steel Corp. (X - Free Report) just released its first quarter fiscal 2017 financial results, posting earnings of a loss of 83 cents per share and revenues of $2.73. billion. Currently, X is a Zacks Rank #1 (Strong Buy), and is down 19.45% to $25.06 per share in trading shortly after its earnings report was released.
Missed earnings estimates. The company posted earnings of a loss of 83 cents per share, missing the Zacks Consensus Estimate of 30 cents per share. This number excludes 20 cents from non-recurring items.
Missed revenue estimates. The company saw revenue figures of $2.73 billion, lagging behind our consensus estimate of $2.921 billion and declining 16.7% year-over-year
In Q1, U.S. Steel’s flat-rolled segment declined significantly compared to the fourth quarter, coming in at a loss of $90 million. This was primarily due to higher raw material costs, increased planned outage costs, seasonally lower results from our mining operations, and restart costs associated with the Granite City hot strip mill and its Keetac iron ore mine.
Looking ahead, U.S. Steel expects 2017 net earnings of roughly $260 million, or $1.50 per share, and adjusted EBITDA of roughly $1.1 billion. Results for the company’s Flat-Rolled, European, and Tubular segments should be higher than 2016 if market condition remain at current levels.
U. S. Steel Chief Executive Officer Mario Longhi said, "While our segment results improved by over $200 million compared with the first quarter of 2016, operating challenges at our Flat-Rolled facilities prevented us from benefiting fully from improved market conditions. However, we continue to be encouraged by the strength of our European business and we are also seeing improving energy markets.”
Here’s a graph that looks at United States Steel’s price, consensus, and EPS surprise:
United States Steel Corporation Price, Consensus and EPS Surprise
United States Steel Corporation Price, Consensus and EPS Surprise | United States Steel Corporation Quote
United States Steel manufactures and sells a variety of steel mill products, coke and taconite pellets. Primary steel operations are the Gary (Indiana) Works, the Fairfield (Alabama) Works near Birmingham, the Mon Valley Works (which includes the Edgar Thomson steelmaking and Irvin finishing operations) on the Monongahela River near Pittsburgh, and U. S. Steel Kosice in the Slovak Republic.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>