United States Steel Corp Earnings: Swinging to a Loss After Two Quarters of Profit

S&P 500 (NYSE:SPY) component United States Steel Corporation (NYSE:X) reported its results for the fourth quarter. United States Steel is an integrated steel producer of flat-rolled and tubular products.

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United States Steel Earnings Cheat Sheet for the Fourth Quarter

Results: Loss narrowed to $226 million (loss of $1.57 per diluted share) from $249 million (loss of $1.74 per share) in the same quarter a year earlier.

Revenue: Rose 12.1% to $4.82 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: X reported an adjusted net loss of $1.14 per share. By that measure, the company fell short of the mean analyst estimate of a loss of 82 cents per share. Analysts were expecting revenue of $4.73 billion.

Quoting Management: Commenting on results, U. S. Steel Chairman and CEO John P. Surma said, “Our operating results for the fourth quarter included another solid performance by our Tubular segment reflecting the continued strength of oil-directed drilling. Our Flat-rolled segment incurred a loss from operations due to soft steel market conditions during most of the quarter, increased costs related to planned maintenance outages and accounting losses on transactions to sell excess iron ore pellets. U. S. Steel Europe results continue to reflect the difficult economic situation in the region.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 13% to $5.08 billion in the third quarter. The figure rose 9.4% in the second quarter from the year earlier and climbed 24.8% in the first quarter from the year-ago quarter.

The company fell short of forecasts after beating estimates in the previous two quarters. In the third quarter, it topped the mark by 17 cents, and in the second quarter, it was ahead by 7 cents.

The company’s loss in the latest quarter follows profits in the previous two quarters. The company reported a profit of $22 million in the third quarter and a profit of $222 million in the second quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from 38 cents a share to 20 cents over the last ninety days. The average estimate for the fiscal year is one cent per share, down from 23 cents ninety days ago.

Competitors to Watch: AK Steel Holding Corp. (NYSE:AKS), Steel Dynamics, Inc. (NASDAQ:STLD), Nucor Corporation (NYSE:NUE), ArcelorMittal (NYSE:MT), Worthington Industries, Inc. (NYSE:WOR), POSCO (NYSE:PKX), Ternium S.A. (NYSE:TX), Mechel OAO (NYSE:MTL) and Companhia Siderurgica Nacional (NYSE:SID).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com