United States Steel Earnings: Sales Up, But Still Losing Money

S&P 500 (NYSE:SPY) component United States Steel Corporation’s (NYSE:X) first quarter loss narrowed due mainly to positive revenue growth. 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 First Quarter

Results: Loss narrowed to $86 million (loss of 60 cents/diluted share) by 45.2% from $157 million (loss of $1.10/share) in the same quarter a year earlier.

Revenue: Rose 24.8% to $4.86 billion YoY.

Actual vs. Wall St. Expectations: X fell short of the mean analyst estimate of a loss of 37 cents/share. Estimates ranged from a loss of 61 cents per share to a profit of 10 cents per share.

Quoting Management: Commenting on results, U. S. Steel Chairman and CEO John P. Surma said, “We reported better first quarter operating results in comparison to the fourth quarter as improving economic conditions and firm customer demand led to increased average realized prices, shipments and raw steel capability utilization for our North American and European flat-rolled operations. The improvements were partially offset by increased raw materials costs.”

Key Stats:

The company has enjoyed double-digit year-over-year revenue growth for the past five quarters. Over that span, the company has averaged growth of 54.9%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose more than twofold from the year earlier quarter.

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

Today’s Performance: Shares of X are down close to 3% in today’s trading.

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