- US Steel reported net sales of $3.51 billion for the fourth quarter, slightly below the estimate of $3.52 billion, marking a 15% decline year-over-year.
- Adjusted EBITDA was $190 million, exceeding the projected $150.2 million, but showing a 42% decrease compared to the previous year.
- The company recorded an adjusted net loss of $28 million, contrary to last year’s profit of $167 million, and more than the estimated loss of $19.5 million.
- Steel shipments totaled 3.30 million tons, down 13% year-over-year, yet higher than the anticipated 3.22 million tons.
- Flat-rolled steel’s average realized price per ton decreased by 2.2% to $956, slightly above the estimated $935.96.
- US Steel Europe’s average realized price per ton was $751, a 2.5% decrease and below the expected $778.63.
- The mini mill’s average realized price per ton fell by 2.2% to $789, still above the prediction of $771.87.
- The company projects first-quarter adjusted EBITDA to range between $100 million and $150 million.
- Earnings for US Steel Europe were affected by ongoing pricing and demand challenges.
- The fourth quarter saw stronger tubular earnings due to increased shipments.
- Analyst recommendations for US Steel include 7 buys, 4 holds, and no sells.
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United States Steel on Smartkarma
Analysts on Smartkarma have been closely tracking United States Steel Corporation, providing valuable insights into its market performance and future potential. Jesus Rodriguez Aguilar‘s report titled “Nippon Steel/US Steel: Deal Blocked but Offering Robust Standalone Value” highlights how despite the regulatory hurdles blocking Nippon Steel’s acquisition bid, U.S. Steel’s expansion plans and strong intrinsic value offer significant upside potential. The report underscores U.S. Steel’s resilience and future growth prospects, with a fair value estimate indicating a ~19% upside from the current price.
Additionally, Baptista Research‘s analysis focuses on U.S. Steel’s financial performance, emphasizing the company’s robust results for the fourth quarter and full year of 2023. The report highlights U.S. Steel’s strong financial position, with net earnings of $895 million for the year and improved performance across its key segments. This positive financial outlook indicates the company’s ability to navigate challenges and maintain solid performance moving forward.
A look at United States Steel Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 2 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
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, a major integrated steel producer, shows a strong overall outlook according to Smartkarma Smart Scores. With a top score of 5 in Value, the company is deemed to be potentially undervalued, making it an attractive investment option. Despite lower scores in Dividend and Growth at 2, United States Steel‘s resilience score of 3 indicates a moderate ability to weather economic challenges. Additionally, a Momentum score of 4 suggests positive performance trends in the near future. These scores collectively point to a promising long-term outlook for United States Steel, particularly with its strategic positioning in North America and Europe.
Specializing in flat-rolled and tubular products, United States Steel caters to a diverse range of industries including automotive, appliance, industrial machinery, and oil and gas. While the company may not be a top choice for dividend-focused investors due to its modest score in that category, its strengths in value, resilience, and momentum indicate potential for growth and stability over the long haul. Investors looking for a solid player in the steel industry may find United States Steel an enticing prospect based on its Smartkarma Smart Scores assessment.
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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