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U.S. Steel (X) Earnings and Revenues Beat Estimates in Q3

Zacks Equity Research
·4 min read

United States Steel Corporation X reported net loss of $234 million or $1.06 per share in third-quarter 2020 compared with a loss of $84 million or 49 cents per share in the year-ago quarter.

Barring one-time items, adjusted loss per share was $1.21 compared with a loss of 21 cents in the prior-year quarter. The figure was narrower than the Zacks Consensus Estimate of a loss of $1.39.

Revenues fell 23.8% year over year to $2,340 million in the reported quarter. However, the top line beat the Zacks Consensus Estimate of $2,211.1 million.

United States Steel Corporation Price, Consensus and EPS Surprise

United States Steel Corporation Price, Consensus and EPS Surprise
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 loss of $159 million in the third quarter against earnings of $46 million in the year-ago quarter.

Steel shipments in the segment fell 18.8% year over year to 2,155,000 tons and average realized price per ton in the unit was $712, down 2.7% year over year.

U.S. Steel Europe: The segment posted profits of $13 million against a loss of $46 million in the year-ago quarter. Shipments in the segment rose 3.3% year over year to 790,000 tons. Average realized price per ton for the unit was $608, down 7.3% year over year.

Tubular:  Loss in the segment amounted to $52 million, wider than a loss of $25 million in the year-ago quarter.

Steel shipments declined 59.2% year over year to 71,000 tons. Average realized price per ton for the unit was $1,230, down 13.2% year over year.

Financials

U.S. Steel ended the quarter with cash and cash equivalents of $1,696 million, nearly four-fold year-over-year increase. Long-term debt rose 85.1% year over year to $4,628 million.

Outlook

The company expects to generate positive adjusted EBITDA in the fourth quarter. U.S. Steel has successfully completed the start-up of its electric arc furnace at Fairfield, which along with the investment in Big River Steel enables the company expand its sustainable steel offerings.  

Price Performance

The company’s shares lost 14.6% in the past a year compared with the industry’s 2.5% decline.


Zacks Rank & Key Picks

U.S. Steel currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Agnico Eagle Mines Limited AEM, Barrick Gold Corporation GOLD and B2Gold Corp BTG. While Barrick and Agnico Eagle sport a Zacks Rank #1 (Strong Buy), B2Gold carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Agnico Eagle has an expected earnings growth rate of 102.1% for 2020. Its shares have returned 31.4% in the past year.

Barrick has an expected earnings growth rate of 100% for 2020. The company’s shares have surged 53.9% in the past year.

B2Gold has an expected earnings growth rate of 250% for 2020. The company’s shares have gained 83.1% in the past year.

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United States Steel Corporation (X) : Free Stock Analysis Report
 
Barrick Gold Corporation (GOLD) : Free Stock Analysis Report
 
Agnico Eagle Mines Limited (AEM) : Free Stock Analysis Report
 
B2Gold Corp (BTG) : Free Stock Analysis Report
 
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