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U.S. Steel (X) Issues Q2 View, Higher Prices to Drive Results
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United States Steel Corporation (X - Free Report) recently announced its guidance for second-quarter 2021. The company’s adjusted EBITDA is projected to be around $1.2 billion. The adjusted net income is forecast to be roughly $880 million and excludes impacts mainly associated with certain restructuring and asset impairment charges. Also, the company expects second-quarter adjusted earnings per share to be roughly $3.08.
U.S. Steel stated that higher steel prices and strong flat-rolled steel demand, along with well-run operations, are expected to deliver adjusted EBITDA that more than doubles its first-quarter performance. Strong demand and low steel inventories are supporting market improvements, and these fundamentals are expected to continue in 2022, the company noted.
Adjusted EBITDA in U.S. Steel’s flat-rolled segment is projected to be more than double of the first-quarter level. Higher steel selling prices are expected to drive results.
The Mini Mill segment is also forecast to exceed the first quarter’s industry leading EAF-based performance. The segment is expected to witness record EBITDA margins, driven by improved efficiencies and higher steel selling prices.
Moreover, the company’s European segment is expected to benefit from continued strong demand and higher steel prices leading to increased EBITDA performance compared with the first quarter. However, it is expected to face headwinds from higher raw material costs.
The Tubular segment is witnessing a steady improvement in market conditions. The company expects near breakeven EBITDA performance in the second quarter, driven by increased customer activity, higher selling prices and improved cost performance.
Moreover, U. S. Steel notified the trustee that it has elected to fully redeem and pay around $718 million aggregate principal amount of its outstanding 6.875% Senior Notes due 2025. The notes will be redeemed with cash on hand at a price equal to 101.719% of the principal amount, plus accrued and unpaid interest to, but excluding, the redemption date of Aug 15, 2021.
Shares of U.S. Steel have surged 182.1% in the past year compared with 125.7% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
U.S. Steel currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the basic materials space are Nucor Corporation (NUE - Free Report) , Olin Corporation (OLN - Free Report) and Cabot Corporation (CBT - Free Report) .
Nucor has a projected earnings growth rate of around 344.9% for the current year. The company’s shares have surged 119.9% in a year. It currently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Olin has an expected earnings growth rate of around 506.7% for the current year. The company’s shares have skyrocketed 258.8% in the past year. It currently sports a Zacks Rank #1.
Cabot has an expected earnings growth rate of around 126% for the current fiscal. The company’s shares have surged 54% in the past year. It currently carries a Zacks Rank #2 (Buy).
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
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Image: Bigstock
U.S. Steel (X) Issues Q2 View, Higher Prices to Drive Results
United States Steel Corporation (X - Free Report) recently announced its guidance for second-quarter 2021. The company’s adjusted EBITDA is projected to be around $1.2 billion. The adjusted net income is forecast to be roughly $880 million and excludes impacts mainly associated with certain restructuring and asset impairment charges. Also, the company expects second-quarter adjusted earnings per share to be roughly $3.08.
U.S. Steel stated that higher steel prices and strong flat-rolled steel demand, along with well-run operations, are expected to deliver adjusted EBITDA that more than doubles its first-quarter performance. Strong demand and low steel inventories are supporting market improvements, and these fundamentals are expected to continue in 2022, the company noted.
Adjusted EBITDA in U.S. Steel’s flat-rolled segment is projected to be more than double of the first-quarter level. Higher steel selling prices are expected to drive results.
The Mini Mill segment is also forecast to exceed the first quarter’s industry leading EAF-based performance. The segment is expected to witness record EBITDA margins, driven by improved efficiencies and higher steel selling prices.
Moreover, the company’s European segment is expected to benefit from continued strong demand and higher steel prices leading to increased EBITDA performance compared with the first quarter. However, it is expected to face headwinds from higher raw material costs.
The Tubular segment is witnessing a steady improvement in market conditions. The company expects near breakeven EBITDA performance in the second quarter, driven by increased customer activity, higher selling prices and improved cost performance.
Moreover, U. S. Steel notified the trustee that it has elected to fully redeem and pay around $718 million aggregate principal amount of its outstanding 6.875% Senior Notes due 2025. The notes will be redeemed with cash on hand at a price equal to 101.719% of the principal amount, plus accrued and unpaid interest to, but excluding, the redemption date of Aug 15, 2021.
Shares of U.S. Steel have surged 182.1% in the past year compared with 125.7% rise of the industry.
Zacks Rank & Other Key Picks
U.S. Steel currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the basic materials space are Nucor Corporation (NUE - Free Report) , Olin Corporation (OLN - Free Report) and Cabot Corporation (CBT - Free Report) .
Nucor has a projected earnings growth rate of around 344.9% for the current year. The company’s shares have surged 119.9% in a year. It currently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Olin has an expected earnings growth rate of around 506.7% for the current year. The company’s shares have skyrocketed 258.8% in the past year. It currently sports a Zacks Rank #1.
Cabot has an expected earnings growth rate of around 126% for the current fiscal. The company’s shares have surged 54% in the past year. It currently carries a Zacks Rank #2 (Buy).
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>