|Bid||4.78 x 10400|
|Ask||4.79 x 26000|
|Day's Range||4.73 - 4.93|
|52 Week Range||4.00 - 7.04|
|PE Ratio (TTM)||239.25|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Cleveland-Cliffs (CLF) reported first-quarter revenues of $239 million, a decline of 48% year-over-year (or YoY). This decline was largely expected due to the change in the sales recognition method by the company as well as lower carryover tons from the previous quarter. The analysts were, however, expecting lower revenues of just $181.4 million. Higher-than-expected realized prices and the earlier-than-expected start to the shipping season led to the better-than-expected top-line expectations.
U.S. Steel Corporation (X) is scheduled to release its 1Q18 earnings on April 30. In this part of our series, we’ll look at U.S. Steel’s forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) ratio ahead of its 1Q18 earnings.
AK Steel (AKS) is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to earnings beat.
U.S. Steel’s 2018 EBITDA (earnings before interest, tax, depreciation, and amortization) guidance is closely followed by analysts during the company’s earnings calls. U.S. Steel and Cleveland-Cliffs (CLF) provide their annual guidance during their quarterly earnings calls. AK Steel (AKS) gives qualitative guidance during its earnings calls, while Nucor (NUE) and Steel Dynamics (STLD) provide their earnings guidance typically 15 days before a quarter ends.
Metal and mining stocks, including Alcoa (AA), have whipsawed amid frequent policy changes. Meanwhile, despite Section 232 tariffs, US steel stocks have been subdued this year. Steel stocks’ price action could be attributed to two key factors.
Previously in this series, we’ve looked at U.S. Steel Corporation’s (X) 1Q18 revenue estimates. In this article, we’ll look at its 1Q18 earnings estimates and stack them up against the company’s guidance.
While politicians’ policy decisions have always affected markets, geopolitics haven’t dominated stocks in recent history as much as we’ve seen this year. For some perspective, let’s take a look at how some of Donald Trump’s decisions have affected stocks. Last year, the Trump administration initiated a probe under Section 232 of the Trade Expansion Act of 1962 to investigate whether steel and aluminum imports threaten US national security.
U.S. Steel Corporation (X) and AK Steel (AKS) are expected to release their 1Q18 earnings on April 30. In this article, we’ll see what analysts are projecting for U.S. Steel’s 1Q18 revenues. Analysts polled by Thomson Reuters expect U.S. Steel to post revenues of $3.15 billion in 1Q18.
As we noted previously in this series, some analysts have turned bearish on US steel stocks. However, the mood in steel companies’ 1Q18 earnings calls has been quite jubilant. Nucor (NUE), Cleveland-Cliffs (CLF), and Steel Dynamics (STLD) have already released their earnings. AK Steel (AKS) and U.S. Steel Corporation (X) are expected to release their 1Q18 earnings on April 30.
As we noted previously in this series, some analysts have turned bearish on US steel names like U.S. Steel Corporation (X) despite the Section 232 tariffs. The view seems to be that we could see US steel demand softening after the tariffs.
AK Steel Holding (AKS) needs investors to pay close attention to the stock based on moves in the options market lately.
In March, President Trump imposed a 25% tariff on steel imports. Tariffs against steel imports should have excited analysts across the board. In March, Timna Tanners of Bank of America Merrill Lynch said she expects Section 232 tariffs to have “limited benefit” on U.S. Steel Corporation’s (X) 2018 earnings.
U.S. Steel Corporation (X) is scheduled to release its 1Q18 earnings on April 30. AK Steel (AKS) is also expected to release its earnings that day. In this part of our series, we’ll see how analysts are rating U.S. Steel ahead of its 1Q18 earnings release.
1Q18 earnings season is in full swing. Last week, both Nucor (NUE) and Steel Dynamics (STLD) released their quarterly financial performance. Steel Dynamics reported revenues of $2.6 billion in 1Q18 versus $2.3 billion in 4Q17 and $2.4 billion in 1Q17. The company reported adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $400 million in 1Q18, compared to $285 million in 4Q17 and $421 million in 1Q17. Steel Dynamics’ 1Q18 earnings were better than expected.
Steel Dynamics (STLD) released its 1Q18 earnings on April 18, 2018. Nucor (NUE) is scheduled to release its 1Q18 earnings on April 19. U.S. Steel Corporation (X) and AK Steel (AKS) are slated to release their financial results on April 30. ArcelorMittal’s (MT) 1Q18 earnings are scheduled for May 11. In this part, we’ll discuss Steel Dynamics’ 1Q18 earnings.
According to analysts at UBS, President Donald Trump can do very little to delay a 17% decline in U.S. steel prices through the end of 2019, and that spells bad news for shares of industry leaders such as United States Steel Corp. ( X) and AK Steel Holding Corp. ( AKS). "We closely track China as a primary leading indicator of U.S. steel prices (by one month), and conclude that risk to prices and the domestic spread is to the downside," stated Bokkenheuser.
Globally, politicians’ economic policies tend to impact equity markets. Looking at a few examples, Indian equity markets rallied in 2014 after Narendra Modi stormed to power. In the US, President Trump’s reform agenda helped buoy investor sentiments and markets rose sharply after his election in 2016.
Metal and mining stocks saw a sharp rally yesterday. Looking at individual names, Alcoa (AA) and Freeport-McMoRan (FCX) gained 4.0% and 4.8%, respectively. In the steel space, U.S. Steel Corporation (X) and AK Steel (AKS) gained 3.1% and 2.3%, respectively. Notably, the stocks saw a significant increase in an otherwise range-bound market. The SPDR Dow Jones Industrial Average ETF (DIA) closed with a marginal loss of 0.17% on April 18. Steel stocks also defied a downgrade by UBS.
Iron ore and steel scrap are the key steelmaking raw materials. In the United States, steel prices and scrap prices tend to move in tandem. On the other hand, Chinese steel and seaborne iron ore prices usually mirror each other.
President Trump finalized the Section 232 tariffs in March and imposed a 25% tariff on steel and a 10% tariff on aluminum imports. Initially, President Trump indicated that there would be no country exemptions from the tariffs. US steel producers like U.S. Steel Corporation (X), AK Steel (AKS), and Nucor (NUE) rallied smartly as investors expected the Section 232 tariffs to lead to a sustainable fall in US steel imports.
US steel prices have risen sharply this year. Benchmark HRC (hot-rolled coil) prices are currently in the ballpark of $850 per ton, according to the data compiled by SteelBenchmarker. While there are several grades of steel products, HRC prices serve as a benchmark to gauge steel pricing environment.
Can 1Q18 Pave the Way for Cleveland-Cliffs Stock to Re-Rate? Let’s use EV-to-forward EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) to value Cleveland-Cliffs (CLF) in relation to its peers and its historical multiples. Among Cliffs’ US steel peers, U.S. Steel Corporation (X) is trading at the lowest forward multiple of 4.5x, while Nucor (NUE) is trading at the highest multiple of 6.9x.
The United States steel sector has reached "the end of the line" despite efforts by the Trump administration to revive the industry, UBS told clients on Tuesday.
With the Section 232 tariffs, the US Commerce Department intends to improve the domestic steel industry’s capacity utilization rate. The US steel industry has operated at a capacity use ratio below 80% since November 2014. Low capacity use could be due to higher imports. US steel producers, including AK Steel (AKS), had to shut down some of their plants and curtail production in response to high import penetration levels. However, we’ve seen some respite from steel imports in February. Imports could fall further after the Section 232 tariffs. ...
Can 1Q18 Pave the Way for Cleveland-Cliffs Stock to Re-Rate? Cleveland-Cliffs (CLF) has accumulated debt over a number of years. In this context, we’ll discuss Cleveland-Cliffs’ ability to generate FCF (free cash flow).