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U.S. Steel (X) to Report Q3 Earnings: What's in the Cards?
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United States Steel Corporation (X - Free Report) is scheduled to come up with its third-quarter 2023 results after the bell on Oct 26.
The company's earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters at an average of 19%. It delivered an earnings surprise of roughly 3.2% in the last reported quarter. Healthy order booking in the Flat-Rolled segment and lower raw material costs are likely to have aided its third-quarter results. However, weaker prices are expected to have weighed on its performance.
Shares of U.S. Steel are up 47.7% over a year compared with the industry’s rise of 17.4%.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
U.S. Steel, last month, issued its guidance for the third quarter. It envisions adjusted EBITDA for the quarter to be roughly $550 million. Third-quarter adjusted earnings per share are expected between $1.10 to $1.15.
The Zacks Consensus Estimate for revenues for U.S. Steel for the third quarter is currently pinned at $4,392 million, indicating a 15.6% year-over-year decline.
Our estimate for consolidated shipments for the third quarter currently stands at 3,779,000 tons, reflecting a 4.7% decrease on a sequential basis.
Some Factors at Play
U.S. Steel is expected to have benefited from healthy order activities in the September quarter. However, the company’s third-quarter results are likely to have been impacted by weaker selling prices.
U.S. steel prices have witnessed a sharp downward correction. The benchmark hot-rolled coil (HRC) prices have retracted from their April 2023 peak of around $1,200 per short ton. Prices have fallen more than 40% from the highs hit in April, currently hovering around $700 per short ton. The downward drift partly reflects shorter lead times. The United Auto Workers strike against General Motors, Ford and Stellantis also weighed on HRC prices of late.
U.S. Steel, in September, stated that it expects third-quarter adjusted EBITDA for Flat-Rolled Segment to align with the second quarter. The Mini Mill Segment's adjusted EBITDA is anticipated to be lower than the second quarter. The company’s European segment is forecast to deliver sequentially lower adjusted EBITDA in the quarter to be reported. Moreover, the Tubular unit is projected to witness lower sequential adjusted EBITDA.
The Flat-Rolled segment is expected to have witnessed healthy order book on end-market strength in the third quarter. However, sequentially weaker selling prices are likely to have affected the segment’s profitability. Our estimate for average realized price per ton in the Flat-Rolled unit stands at $1,060, suggesting a 2.6% sequential decline.
The results in the Europe unit are expected to have been hurt by lower selling prices and shipment volumes. However, the unit is likely to have benefited from lower raw material costs. Our estimate for average realized price per ton for the unit stands at $852, calling for an 11.7% sequential decline.
Lower selling prices are expected to have affected results in the Mini Mill unit in the September quarter. However, the impacts of lower raw material prices and favorable customer volumes are likely to reflect on the segment’s performance. Our estimate for average realized price per ton for the unit is pegged at $939, reflecting a 7.1% decrease on a sequential basis.
The results in the Tubular segment are expected to have been hurt by lower selling prices and weaker demand. Our estimate for average realized price per ton for the unit stands at $2,966, calling for a 15.1% sequential decline.
United States Steel Corporation Price and EPS Surprise
Our proven model does not conclusively predict an earnings beat for U.S. Steel this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for U.S. Steel is 0.00%. The Zacks Consensus Estimate for the third quarter is currently pegged at $1.15. 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 #3.
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
The consensus estimate for LYB’s earnings for the third quarter is currently pegged at $1.98.
Methanex Corporation (MEOH - Free Report) , slated to release earnings on Oct 25, has an Earnings ESP of +190.32% and carries a Zacks Rank #2 at present.
The consensus mark for MEOH’s third-quarter earnings is currently pegged at a loss of 8 cents.
Kinross Gold Corporation (KGC - Free Report) , scheduled to release third-quarter earnings on Nov 8, has an Earnings ESP of +8.70%.
The Zacks Consensus Estimate for Kinross' earnings for the third quarter is currently pegged at 9 cents. KGC currently carries a Zacks Rank #3.
Image: Bigstock
U.S. Steel (X) to Report Q3 Earnings: What's in the Cards?
United States Steel Corporation (X - Free Report) is scheduled to come up with its third-quarter 2023 results after the bell on Oct 26.
The company's earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters at an average of 19%. It delivered an earnings surprise of roughly 3.2% in the last reported quarter. Healthy order booking in the Flat-Rolled segment and lower raw material costs are likely to have aided its third-quarter results. However, weaker prices are expected to have weighed on its performance.
Shares of U.S. Steel are up 47.7% over a year compared with the industry’s rise of 17.4%.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
U.S. Steel, last month, issued its guidance for the third quarter. It envisions adjusted EBITDA for the quarter to be roughly $550 million. Third-quarter adjusted earnings per share are expected between $1.10 to $1.15.
The Zacks Consensus Estimate for revenues for U.S. Steel for the third quarter is currently pinned at $4,392 million, indicating a 15.6% year-over-year decline.
Our estimate for consolidated shipments for the third quarter currently stands at 3,779,000 tons, reflecting a 4.7% decrease on a sequential basis.
Some Factors at Play
U.S. Steel is expected to have benefited from healthy order activities in the September quarter. However, the company’s third-quarter results are likely to have been impacted by weaker selling prices.
U.S. steel prices have witnessed a sharp downward correction. The benchmark hot-rolled coil (HRC) prices have retracted from their April 2023 peak of around $1,200 per short ton. Prices have fallen more than 40% from the highs hit in April, currently hovering around $700 per short ton. The downward drift partly reflects shorter lead times. The United Auto Workers strike against General Motors, Ford and Stellantis also weighed on HRC prices of late.
U.S. Steel, in September, stated that it expects third-quarter adjusted EBITDA for Flat-Rolled Segment to align with the second quarter. The Mini Mill Segment's adjusted EBITDA is anticipated to be lower than the second quarter. The company’s European segment is forecast to deliver sequentially lower adjusted EBITDA in the quarter to be reported. Moreover, the Tubular unit is projected to witness lower sequential adjusted EBITDA.
The Flat-Rolled segment is expected to have witnessed healthy order book on end-market strength in the third quarter. However, sequentially weaker selling prices are likely to have affected the segment’s profitability. Our estimate for average realized price per ton in the Flat-Rolled unit stands at $1,060, suggesting a 2.6% sequential decline.
The results in the Europe unit are expected to have been hurt by lower selling prices and shipment volumes. However, the unit is likely to have benefited from lower raw material costs. Our estimate for average realized price per ton for the unit stands at $852, calling for an 11.7% sequential decline.
Lower selling prices are expected to have affected results in the Mini Mill unit in the September quarter. However, the impacts of lower raw material prices and favorable customer volumes are likely to reflect on the segment’s performance. Our estimate for average realized price per ton for the unit is pegged at $939, reflecting a 7.1% decrease on a sequential basis.
The results in the Tubular segment are expected to have been hurt by lower selling prices and weaker demand. Our estimate for average realized price per ton for the unit stands at $2,966, calling for a 15.1% sequential decline.
United States Steel Corporation Price and EPS Surprise
United States Steel Corporation price-eps-surprise | United States Steel Corporation Quote
Zacks Model
Our proven model does not conclusively predict an earnings beat for U.S. Steel this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for U.S. Steel is 0.00%. The Zacks Consensus Estimate for the third quarter is currently pegged at $1.15. 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 #3.
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
LyondellBasell Industries N.V. (LYB - Free Report) , scheduled to release earnings on Oct 27, has an Earnings ESP of +5.14% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for LYB’s earnings for the third quarter is currently pegged at $1.98.
Methanex Corporation (MEOH - Free Report) , slated to release earnings on Oct 25, has an Earnings ESP of +190.32% and carries a Zacks Rank #2 at present.
The consensus mark for MEOH’s third-quarter earnings is currently pegged at a loss of 8 cents.
Kinross Gold Corporation (KGC - Free Report) , scheduled to release third-quarter earnings on Nov 8, has an Earnings ESP of +8.70%.
The Zacks Consensus Estimate for Kinross' earnings for the third quarter is currently pegged at 9 cents. KGC currently carries a Zacks Rank #3.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.