- US Steel’s second-quarter adjusted EBITDA is forecasted to be between $375 million to $425 million, below the estimate of $447.4 million.
- In the first quarter, US Steel experienced an adjusted loss per share of $0.39, missing the earnings per share of $0.82 from the previous year but better than the estimated loss of $0.45.
- The first-quarter net sales were $3.73 billion, a 10% decline from the previous year, but slightly above the estimate of $3.67 billion.
- First-quarter adjusted EBITDA was $172 million, a 58% decline year-over-year, yet surpassed the estimate of $125.3 million.
- The company reported an adjusted net loss of $87 million for the quarter, compared to a $206 million profit the previous year, but the figure was better than the estimated loss of $109.6 million.
- Steel shipments totaled 3.76 million tons, a marginal 1.2% decrease year-over-year, exceeding the estimated 3.45 million tons.
- A fall in steel prices was observed: Flat-rolled steel was $984 per ton, down 6.6% year-over-year, though above the estimated $969.52.
- US Steel Europe saw average prices of $741 per ton, an 11% decline year-over-year, slightly below the estimate of $748.76.
- Mini mill prices were $761 per ton, a notable 22% drop year-over-year, and below the estimate of $804.80.
- CEO David B. Burritt highlighted the strength in the operating performance despite challenges, attributing the US segment’s performance to effective commercial strategy and cost management.
- The European segment showed resilience due to higher shipments and effective cost management, while the Tubular segment benefitted from stronger selling prices.
- The North American Flat-Rolled segment recorded an EBITDA margin of 5% attributable to strategic commercial practices.
- Investment opinions on US Steel include 4 buys, 6 holds, and 0 sells.
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United States Steel on Smartkarma
Analysts on Smartkarma, such as Baptista Research, are closely following United States Steel Corporation’s financial performance and strategic moves. Baptista Research highlights the company’s strong financial results for the fourth quarter and fiscal year of 2023, with net earnings totaling $895 million for the year and $167 million for the fourth quarter. These positive results come alongside a pending merger, indicating a potentially bright future for U.S. Steel.
Similarly, analyst Jesus Rodriguez Aguilar discusses the blocked merger between Nippon Steel and U.S. Steel, emphasizing U.S. Steel’s standalone value and growth prospects. Despite the regulatory hurdles, U.S. Steel’s expansion plans, like the Big River Steel 2 project, are expected to significantly increase capacity and drive free cash flow generation. With an intrinsic value estimate of $39.75, U.S. Steel’s anticipated performance offers a potential 19% upside from its current closing price of $33.30.
A look at United States Steel Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 2 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
United States Steel Corporation, an integrated steel producer, shows a promising long-term outlook according to Smartkarma Smart Scores. Combining a top score of 5 in Value and Momentum, the company indicates strong potential in terms of its current stock value and positive market performance. This suggests that investing in United States Steel could offer good value and future growth opportunities for investors looking at the long-term horizon.
While the company’s Dividend and Growth scores are moderate at 2, its Resilience score of 3 showcases a steady and durable nature. United States Steel‘s presence in various industries such as automotive, appliance, and oil and gas further diversifies its revenue streams, enhancing its resilience to market fluctuations. Overall, the company’s Smart Scores paint a favorable picture for its future prospects, positioning United States Steel as a strong contender in the steel industry.
### United States Steel Corporation operates as an integrated steel producer. The Company manufactures flat-rolled and tubular products with production operations in North America and Europe. United States Steel serves the automotive, appliance, container, industrial machinery, construction, and oil and gas industries. ###
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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