United States Steel Earnings Cheat Sheet: Streak of Three Straight Losses Snapped

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

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United States Steel Earnings Cheat Sheet for the Second Quarter

Results: Swung to a profit of $222 million ($1.33 per diluted share) in the quarter. The metal fabrication company had a net loss of $25 million or a loss of 17 cents per share in the year earlier quarter.

Revenue: Rose 9.4% to $5.12 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: X beat the mean analyst estimate of $1.26 per share. It fell short of the average revenue estimate of $5.49 billion.

Quoting Management: U.S.Steel Chairman and CEO John P. Surma said, “Our operating results improved significantly from the first quarter, driven primarily by higher average realized prices and stable raw materials costs in our Flat-rolled segment. U. S. Steel Europe segment results were slightly lower, reflecting significantly lower shipments and capacity utilization and increased raw materials costs, partially offset by higher average realized prices. Tubular segment results were in line with the first quarter of 2011.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 24.8% to $4.86 billion in the first quarter. The figure rose 28.2% in the fourth quarter of the last fiscal year from the year earlier and climbed 59.6% in the third quarter of the last fiscal year from the year-ago quarter.

The company beat estimates last quarter after falling short in the previous two quarters. In the first quarter, it missed the mark by 22 cents, and in the fourth quarter of the last fiscal year, it fell short by 69 cents.

X’s profit in the latest quarter follows losses in the three previous quarters. The company reported a net loss of $86 million in the first quarter, a loss of $249 million in the fourth quarter of the last fiscal year and a loss of $51 million in the third of the last fiscal year.

Margins rose in the first quarter after falling the quarter before. Gross margin rose 1.5 percentage points to 12.1% from the quarter earlier quarter. In the fourth quarter of the last fiscal year, the figure rose 1.6 percentage points to 5% from the year earlier quarter.

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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(Source: Xignite Financials)

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