U.S. Steel (X) Tops Earnings and Revenue Estimates in Q2

United States Steel Corporation X swung to a profit of $1,012 million or $3.53 per share in second-quarter 2021 from a loss of $589 million or $3.36 per share in the year-ago quarter.

Barring one-time items, adjusted earnings per share were $3.37 compared with a loss of $2.67 in the prior-year quarter. The figure trounced the Zacks Consensus Estimate of $3.16.

Revenues climbed around 140% year over year to $5,025 million in the reported quarter. It surpassed the Zacks Consensus Estimate of $4,702.9 million. The company benefited from strong steel shipments and higher prices in the quarter.

United States Steel Corporation Price, Consensus and EPS Surprise

United States Steel Corporation Price, Consensus and EPS SurpriseUnited States Steel Corporation Price, Consensus and EPS Surprise
United States Steel Corporation Price, Consensus and EPS Surprise

United States Steel Corporation price-consensus-eps-surprise-chart | United States Steel Corporation Quote

Segment Highlights

Flat-Rolled: The segment recorded a profit of $579 million in the second quarter compared with a loss of $329 million in the year-ago quarter.

Steel shipments in the segment climbed roughly 30% year over year to 2,326,000 tons and average realized price per ton in the unit was $1,078, up around 50% year over year.

Mini Mill: The company added the segment after Jan 15, 2021 with the purchase of the remaining stake in Big River Steel. The segment recorded a profit of $284 million in the quarter. Shipments were 616,000 tons while average realized price per ton was $1,207.

U.S. Steel Europe: The segment posted profits of $207 million against a loss of $26 million in the year-ago quarter. Shipments in the segment rose around 91% year over year to 1,167,000 tons. Average realized price per ton for the unit was $905, up around 43% year over year.

Tubular: The segment posted breakeven results against a loss of $47 million in the year-ago quarter. Shipments declined roughly 20% year over year to 105,000 tons. Average realized price per ton for the unit was $1,633, up roughly 27% year over year.

Financials

At the end of the quarter, the company had cash and cash equivalents of $1,329 million, down around 42% year over year. Long-term debt fell roughly 13% year over year to $4,803 million.

Outlook

The company expects the prevailing strong market environment to continue moving ahead. It expects to set new records in the third quarter and achieve all-time best adjusted EBITDA.

Price Performance

The company’s shares rallied 282.4% in the past a year, outperforming the industry’s 146.5% rise.

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Zacks Rank & Key Picks

U.S. Steel currently carries a Zacks Rank #1 (Strong Buy).

Other top-ranked stocks worth considering in the basic materials space include Nucor Corporation NUE, ArcelorMittal MT and Cabot Corporation CBT, each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Nucor has a projected earnings growth rate of 444.9% for the current year. The company’s shares have surged around 147% in a year.

ArcelorMittal has an expected earnings growth rate of 1,484.4% for the current year. The company’s shares have shot up around 220% in the past year.

Cabot has an expected earnings growth rate of around 137.5% for the current fiscal. The company’s shares have gained roughly 51% in the past year.

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By Matt Earle

Matthew Earle is the Founder of MiningFeeds. In 2005, Matt founded MiningNerds.com to provide data and information to the mining investment community. This site was merged with Highgrade Review to form MiningFeeds. Matt has a B.Sc. degree with a minor in geology from the University of Toronto.

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