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U.S. Steel (X) to Report Q2 Earnings: What's in the Offing?
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United States Steel Corporation (X - Free Report) is scheduled to come up with its second-quarter 2023 results after the bell on Jul 27.
The company's earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, while missed once. U.S. Steel has a trailing-four quarter earnings surprise of 18.1%, on average. It delivered an earnings surprise of roughly 26.3% in the last reported quarter. Healthy end-market demand, improved order entry and improved selling prices are likely to have aided its second-quarter results.
Shares of U.S. Steel are up 19.3% over a year compared with the industry’s rise of 46.6%.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
Zacks Model
Our proven model predicts the likelihood of an earnings beat for U.S. Steel this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat.
Earnings ESP: Earnings ESP for U.S. Steel is +0.31%. This is because the Most Accurate Estimate is currently pegged at $1.87 while the Zacks Consensus Estimate stands at $1.86. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: U.S. Steel currently carries a Zacks Rank #2.
What do the Estimates Say?
U.S. Steel, last month, issued its guidance for the second quarter. It envisions adjusted EBITDA for the quarter to be $775 million. Second-quarter adjusted earnings per share are expected between $1.81 and $1.86.
The Zacks Consensus Estimate for revenues for U.S. Steel for the second quarter is currently pinned at $4,943 million, indicating a 21.4% year-over-year decline.
Some Factors at Play
U.S. Steel is expected to have benefited from healthy order entry on favorable demand in the June quarter. Healthy demand is expected to have supported its shipments in the quarter. Our estimate for consolidated shipments for the quarter currently stands at 4,064,000 tons, reflecting a 2.9% increase on a sequential basis.
The company’s second-quarter results are also likely to have been aided by higher selling prices in most segments. U.S. steel prices have rebounded this year after tumbling in the fourth quarter of 2022. The benchmark hot-rolled coil prices have recovered, driven by U.S. steel mills’ price hike actions, low import levels, supply tightness partly due to mill outages and a recovery in demand.
U.S. Steel, in June, stated that it expects sequentially higher adjusted EBITDA in the Flat-Rolled segment in the second quarter while the Mini Mill segment is forecast to register increased adjusted EBITDA. The company’s European segment is forecast to deliver positive EBITDA in the quarter to be reported. However, the Tubular unit is projected to witness lower sequential EBITDA.
The Flat-Rolled segment is expected to have witnessed healthy order book on end-market strength in the second quarter. Improved selling prices are likely to have aided the segment’s profitability. Our estimate for average realized price per ton in the Flat-Rolled unit stands at $1,098, suggesting an 8.5% sequential rise.
The results in the Europe unit are expected to have been driven by healthy selling prices, reduced energy costs, strong order book and improved efficiencies. Our estimate for average realized price per ton for the unit stands at $913, calling for a 0.4% sequential rise.
The Mini Mill unit is expected to have benefited from improved prices in the June quarter. Our estimate for average realized price per ton for the unit is pegged at $1,129, reflecting a 42.2% rise on a sequential basis.
The results in the Tubular segment are expected to have been hurt by lower selling prices and import pressures. Our estimate for average realized price per ton for the unit stands at $3,565, calling for a 5.1% sequential decline.
United States Steel Corporation Price and EPS Surprise
Here are some companies in the basic materials space you may want to consider, as our model shows these too have the right combination of elements to post an earnings beat this quarter:
The consensus estimate for AEM’s earnings for the second quarter is currently pegged at 55 cents.
Axalta Coating Systems Ltd. (AXTA - Free Report) , which is slated to release its earnings on Aug 1, has an Earnings ESP of +6.02%.
The consensus estimate for AXTA’s earnings for the second quarter is currently pegged at 39 cents. It currently carries a Zacks Rank #2.
Kinross Gold Corporation (KGC - Free Report) , which is scheduled to release earnings on Aug 2, has an Earnings ESP of +5.56% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for earnings for KGC for the second quarter is pegged at 9 cents.
Image: Bigstock
U.S. Steel (X) to Report Q2 Earnings: What's in the Offing?
United States Steel Corporation (X - Free Report) is scheduled to come up with its second-quarter 2023 results after the bell on Jul 27.
The company's earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, while missed once. U.S. Steel has a trailing-four quarter earnings surprise of 18.1%, on average. It delivered an earnings surprise of roughly 26.3% in the last reported quarter. Healthy end-market demand, improved order entry and improved selling prices are likely to have aided its second-quarter results.
Shares of U.S. Steel are up 19.3% over a year compared with the industry’s rise of 46.6%.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
Zacks Model
Our proven model predicts the likelihood of an earnings beat for U.S. Steel this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat.
Earnings ESP: Earnings ESP for U.S. Steel is +0.31%. This is because the Most Accurate Estimate is currently pegged at $1.87 while the Zacks Consensus Estimate stands at $1.86. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: U.S. Steel currently carries a Zacks Rank #2.
What do the Estimates Say?
U.S. Steel, last month, issued its guidance for the second quarter. It envisions adjusted EBITDA for the quarter to be $775 million. Second-quarter adjusted earnings per share are expected between $1.81 and $1.86.
The Zacks Consensus Estimate for revenues for U.S. Steel for the second quarter is currently pinned at $4,943 million, indicating a 21.4% year-over-year decline.
Some Factors at Play
U.S. Steel is expected to have benefited from healthy order entry on favorable demand in the June quarter. Healthy demand is expected to have supported its shipments in the quarter. Our estimate for consolidated shipments for the quarter currently stands at 4,064,000 tons, reflecting a 2.9% increase on a sequential basis.
The company’s second-quarter results are also likely to have been aided by higher selling prices in most segments. U.S. steel prices have rebounded this year after tumbling in the fourth quarter of 2022. The benchmark hot-rolled coil prices have recovered, driven by U.S. steel mills’ price hike actions, low import levels, supply tightness partly due to mill outages and a recovery in demand.
U.S. Steel, in June, stated that it expects sequentially higher adjusted EBITDA in the Flat-Rolled segment in the second quarter while the Mini Mill segment is forecast to register increased adjusted EBITDA. The company’s European segment is forecast to deliver positive EBITDA in the quarter to be reported. However, the Tubular unit is projected to witness lower sequential EBITDA.
The Flat-Rolled segment is expected to have witnessed healthy order book on end-market strength in the second quarter. Improved selling prices are likely to have aided the segment’s profitability. Our estimate for average realized price per ton in the Flat-Rolled unit stands at $1,098, suggesting an 8.5% sequential rise.
The results in the Europe unit are expected to have been driven by healthy selling prices, reduced energy costs, strong order book and improved efficiencies. Our estimate for average realized price per ton for the unit stands at $913, calling for a 0.4% sequential rise.
The Mini Mill unit is expected to have benefited from improved prices in the June quarter. Our estimate for average realized price per ton for the unit is pegged at $1,129, reflecting a 42.2% rise on a sequential basis.
The results in the Tubular segment are expected to have been hurt by lower selling prices and import pressures. Our estimate for average realized price per ton for the unit stands at $3,565, calling for a 5.1% sequential decline.
United States Steel Corporation Price and EPS Surprise
United States Steel Corporation price-eps-surprise | United States Steel Corporation Quote
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider, as our model shows these too have the right combination of elements to post an earnings beat this quarter:
Agnico Eagle Mines Limited (AEM - Free Report) , which is scheduled to release earnings on Jul 26, has an Earnings ESP of +3.34% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for AEM’s earnings for the second quarter is currently pegged at 55 cents.
Axalta Coating Systems Ltd. (AXTA - Free Report) , which is slated to release its earnings on Aug 1, has an Earnings ESP of +6.02%.
The consensus estimate for AXTA’s earnings for the second quarter is currently pegged at 39 cents. It currently carries a Zacks Rank #2.
Kinross Gold Corporation (KGC - Free Report) , which is scheduled to release earnings on Aug 2, has an Earnings ESP of +5.56% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for earnings for KGC for the second quarter is pegged at 9 cents.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.