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Cleveland-Cliffs (CLF) Q2 Earnings Top Estimates, Sales Miss
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Cleveland-Cliffs Inc.’s (CLF - Free Report) second-quarter 2024 adjusted earnings were 11 cents per share, down from 69 cents in the prior-year quarter. The Zacks Consensus Estimate was pegged at break-even for the quarter.
Revenues fell 14.9% to $5,092 million in the quarter. The top line missed the Zacks Consensus Estimate of $5,199.9 million.
Cleveland-Cliffs Inc. Price, Consensus and EPS Surprise
The company reported Steelmaking revenues of roughly $4.9 billion in the second quarter, down around 15.4% year over year.
Average net selling price per net ton of steel products was $1,125 in the quarter, down around 10.3% year over year. It was below our estimate of $1,135. External sales volumes for steel products were roughly 4 million net tons, down around 5.1% year over year. It was modestly below our estimate of 4.1 million net tons.
Financial Position
Cleveland-Cliffs ended the second quarter with cash and cash equivalents of $110 million, up around 267% sequentially. Long-term debt decreased 4.3% sequentially to $3,507 million.
Net cash provided by operating activities was $519 million.
Cleveland-Cliffs repurchased 7.5 million shares during the second quarter. It recorded a free cash flow of $362 million.
Outlook
Cliffs has reduced its projected capital expenditures for 2024 to $650-$700 million from $675-$725 million expected earlier. Furthermore, its goal of reducing steel unit costs by about $30 per net ton year over year is on track.
Price Performance
Shares of CLF are down 7.9% over the past year compared with a 4.8% decline of its industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
CLF currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks worth a look in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Ero Copper Corp. (ERO - Free Report) and Kinross Gold Corporation (KGC - Free Report) .
Carpenter Technology is slated to report fiscal fourth-quarter results on Jul 25. The Zacks Consensus Estimate for CRS’s fourth-quarter earnings is pegged at $1.52. CRS’ earnings beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, the average earnings surprise being 15.1%. The company’s shares have soared 113.2% in the past year. CRS sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ero Copper is slated to report second-quarter results on Aug 1, after market close. The Zacks Consensus Estimate for ERO’s second-quarter earnings is pegged at 27 cents. ERO currently carries a Zacks Rank #2 (Buy).
Kinross will report results for the second quarter on Jul 31. The Zacks Consensus Estimate for Kinross's second-year earnings is pegged at 13 cents. KGC, a Zacks Rank #2 stock, beat the consensus in the last four quarters, with the average earnings surprise being 46%. The stock has surged nearly 79.3% in the past year.
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Cleveland-Cliffs (CLF) Q2 Earnings Top Estimates, Sales Miss
Cleveland-Cliffs Inc.’s (CLF - Free Report) second-quarter 2024 adjusted earnings were 11 cents per share, down from 69 cents in the prior-year quarter. The Zacks Consensus Estimate was pegged at break-even for the quarter.
Revenues fell 14.9% to $5,092 million in the quarter. The top line missed the Zacks Consensus Estimate of $5,199.9 million.
Cleveland-Cliffs Inc. Price, Consensus and EPS Surprise
Cleveland-Cliffs Inc. price-consensus-eps-surprise-chart | Cleveland-Cliffs Inc. Quote
Operational Highlights
The company reported Steelmaking revenues of roughly $4.9 billion in the second quarter, down around 15.4% year over year.
Average net selling price per net ton of steel products was $1,125 in the quarter, down around 10.3% year over year. It was below our estimate of $1,135. External sales volumes for steel products were roughly 4 million net tons, down around 5.1% year over year. It was modestly below our estimate of 4.1 million net tons.
Financial Position
Cleveland-Cliffs ended the second quarter with cash and cash equivalents of $110 million, up around 267% sequentially. Long-term debt decreased 4.3% sequentially to $3,507 million.
Net cash provided by operating activities was $519 million.
Cleveland-Cliffs repurchased 7.5 million shares during the second quarter. It recorded a free cash flow of $362 million.
Outlook
Cliffs has reduced its projected capital expenditures for 2024 to $650-$700 million from $675-$725 million expected earlier. Furthermore, its goal of reducing steel unit costs by about $30 per net ton year over year is on track.
Price Performance
Shares of CLF are down 7.9% over the past year compared with a 4.8% decline of its industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
CLF currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks worth a look in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Ero Copper Corp. (ERO - Free Report) and Kinross Gold Corporation (KGC - Free Report) .
Carpenter Technology is slated to report fiscal fourth-quarter results on Jul 25. The Zacks Consensus Estimate for CRS’s fourth-quarter earnings is pegged at $1.52. CRS’ earnings beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, the average earnings surprise being 15.1%. The company’s shares have soared 113.2% in the past year. CRS sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ero Copper is slated to report second-quarter results on Aug 1, after market close. The Zacks Consensus Estimate for ERO’s second-quarter earnings is pegged at 27 cents. ERO currently carries a Zacks Rank #2 (Buy).
Kinross will report results for the second quarter on Jul 31. The Zacks Consensus Estimate for Kinross's second-year earnings is pegged at 13 cents. KGC, a Zacks Rank #2 stock, beat the consensus in the last four quarters, with the average earnings surprise being 46%. The stock has surged nearly 79.3% in the past year.