United States Steel Earnings: Stronger Than Wall Street Estimates

United States Steel Corp. (NYSE:X) had a loss and met Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Despite exceeding expectations, the net loss and quarterly revenue dip have shares down 1.01%.

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United States Steel Corp. Earnings Cheat Sheet

Results: Net loss of $50 million (loss of 35 cents per diluted share) in the quarter versus a net loss of $211 million in the year-earlier quarter.

Revenue: Decreased 6.62% to $4.5 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: United States Steel Corp. reported adjusted net loss of 35 cent per share. By that measure, the company beat the mean analyst estimate loss of 70 cents per share. It beat the average revenue estimate of $4.35 billion.

Quoting Management: U. S. Steel Chairman and CEO John P. Surma said, “For the third consecutive quarter all three of our reportable segments had positive operating results despite the uncertain global economic environment. Lower drilling and project line pipe activity, as well as continued high import levels, significantly reduced our Tubular segment’s results…

…For our Flat-rolled segment, our profitability was negatively affected by the uncertain domestic fiscal situation as well as continued high levels of flat-rolled steel imports.”

Key Stats:

Revenue decreased 3.27% from $4.65 billion in the previous quarter. Net income increased to $0 in the quarter versus a net loss of $44 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.57 to a profit $0.31. For the current year, the average estimate has moved down from a profit of $1.36 to a profit of $0.86 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)