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U.S. Steel (X) Earnings Top Estimates in Q1 on Higher Prices
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United States Steel Corporation (X - Free Report) logged a profit of $882 million or $3.02 per share in first-quarter 2022, rising from a profit of $91 million or 35 cents per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share were $3.05 per share. The figure surpassed the Zacks Consensus Estimate of $3.00.
Revenues rose around 43% year over year to $5,234 million in the reported quarter. It missed the Zacks Consensus Estimate of $5,340.9 million. The company benefited from a surge in prices across its segments in the quarter. However, its overall shipments dropped around 6% year over year in the quarter.
United States Steel Corporation Price, Consensus and EPS Surprise
Flat-Rolled: The segment recorded a profit of $513 million in the first quarter, up more than three-fold year over year.
Steel shipments in the segment fell roughly 16% year over year to 1,947,000 tons. Average realized price per ton in the unit was $1,368, up around 54% year over year.
Mini Mill: The segment recorded a profit of $278 million in the quarter, up more than two-fold year over year. Shipments were 507,000 tons (up 13%) while average realized price per ton was $1,372, up around 42% year over year.
U.S. Steel Europe: The segment posted profits of $264 million, up more than two-fold year over year. Shipments in the segment rose around 6% year over year to 1,110,000 tons. Average realized price per ton for the unit was $1,109, up around 48% year over year.
Tubular: The segment posted a profit of $77 million against a loss of $29 million in the year-ago quarter. Shipments rose roughly 44% year over year to 128,000 tons. Average realized price per ton for the unit was $2,349, up roughly 71% year over year.
Financials
At the end of the quarter, the company had cash and cash equivalents of $2,866 million, up around 281% year over year. Long-term debt fell roughly 32% year over year to $3,917 million.
Outlook
U.S. Steel said that it sees the second quarter of 2022 to be its all-time best second quarter as it expects its balanced customer portfolio, raw materials integration and operating leverage to boost adjusted EBITDA and support another quarter of strong EBITDA margin and cash generation.
Price Performance
The company’s shares are up 40.1% in the past year compared with the industry’s 9.6% rise.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
U.S. Steel currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Nutrien Ltd. (NTR - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Commercial Metals Company (CMC - Free Report) .
Nutrien, sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 127.9% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 34.3% upward over the last 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of roughly 60.3%, on average. NTR has rallied around 84% in a year.
AdvanSix, carrying a Zacks Rank #1, has an expected earnings growth rate of 54.7% for the current year. ASIX's consensus estimate for current-year earnings has been revised 35% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 23.6%, on average. ASIX has rallied around 57% in a year.
Commercial Metals, carrying a Zacks Rank #1, has a projected earnings growth rate of 78.2% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 31.9% upward over the past 60 days.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 16%, on average. CMC has gained around 42% in a year.
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U.S. Steel (X) Earnings Top Estimates in Q1 on Higher Prices
United States Steel Corporation (X - Free Report) logged a profit of $882 million or $3.02 per share in first-quarter 2022, rising from a profit of $91 million or 35 cents per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share were $3.05 per share. The figure surpassed the Zacks Consensus Estimate of $3.00.
Revenues rose around 43% year over year to $5,234 million in the reported quarter. It missed the Zacks Consensus Estimate of $5,340.9 million. The company benefited from a surge in prices across its segments in the quarter. However, its overall shipments dropped around 6% year over year in the quarter.
United States Steel Corporation Price, Consensus and EPS Surprise
United States Steel Corporation price-consensus-eps-surprise-chart | United States Steel Corporation Quote
Segment Highlights
Flat-Rolled: The segment recorded a profit of $513 million in the first quarter, up more than three-fold year over year.
Steel shipments in the segment fell roughly 16% year over year to 1,947,000 tons. Average realized price per ton in the unit was $1,368, up around 54% year over year.
Mini Mill: The segment recorded a profit of $278 million in the quarter, up more than two-fold year over year. Shipments were 507,000 tons (up 13%) while average realized price per ton was $1,372, up around 42% year over year.
U.S. Steel Europe: The segment posted profits of $264 million, up more than two-fold year over year. Shipments in the segment rose around 6% year over year to 1,110,000 tons. Average realized price per ton for the unit was $1,109, up around 48% year over year.
Tubular: The segment posted a profit of $77 million against a loss of $29 million in the year-ago quarter. Shipments rose roughly 44% year over year to 128,000 tons. Average realized price per ton for the unit was $2,349, up roughly 71% year over year.
Financials
At the end of the quarter, the company had cash and cash equivalents of $2,866 million, up around 281% year over year. Long-term debt fell roughly 32% year over year to $3,917 million.
Outlook
U.S. Steel said that it sees the second quarter of 2022 to be its all-time best second quarter as it expects its balanced customer portfolio, raw materials integration and operating leverage to boost adjusted EBITDA and support another quarter of strong EBITDA margin and cash generation.
Price Performance
The company’s shares are up 40.1% in the past year compared with the industry’s 9.6% rise.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
U.S. Steel currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Nutrien Ltd. (NTR - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Commercial Metals Company (CMC - Free Report) .
Nutrien, sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 127.9% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 34.3% upward over the last 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of roughly 60.3%, on average. NTR has rallied around 84% in a year.
AdvanSix, carrying a Zacks Rank #1, has an expected earnings growth rate of 54.7% for the current year. ASIX's consensus estimate for current-year earnings has been revised 35% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 23.6%, on average. ASIX has rallied around 57% in a year.
Commercial Metals, carrying a Zacks Rank #1, has a projected earnings growth rate of 78.2% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 31.9% upward over the past 60 days.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 16%, on average. CMC has gained around 42% in a year.