Preview: US Steel (X) Gearing Up for a Profitable Third Quarter (MT, NUE, STLD, AKS)
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United States Steel Corp. (NYSE: X) is trading higher ahead of the company's third quarter earnings report, schedule for before the market opens tomorrow, October 26. Shares are up 0.19% to $42.36 in afternoon trading today.
The company is expected to report EPS of $0.23 on revs of $4.53 billion. Last quarter, the company posted a loss of $0.17 on revs of $4.68 billion. Last year, X had an adjusted loss of $2.11 on revs of $2.80 billion.
Shares have increased through the quarter, gaining 15.1% to $43.84 at the end of September. Shares are trading 26.5% lower since the start of 2010, and 3.4% lower since the end of the quarter.
At a simple valuation, shares are trading for a P/E of 10x FY11 EPS estimates, compared to 12.5x for AK Steel (NYSE: AKS), 13.9x for Nucor Corp. (NYSE: NUE), and 11.5x for Arcelor Mittal (NYSE: MT).
Data from Bloomberg has 6 analysts with a Buy rating, 6 with a Hold, and one recommending to Sell. The analyst price target average is $57, with a High of $70 and a low of $44.
Analyst Ratings Through the Quarter
Goldman Sachs downgraded the shares in September, from Buy to Neutral. Goldman also lowered their FY11/FY12 estimates to to $3.60/$6.00 from $5.50/$7.50 on lower expected margins in flat rolled carbon products both in the US and Europe. The firm's price target went from $51 to $45.
Also, Longbow Research lowered from Buy to Neutral, but hanging on to their $60 price target.
Summary
U.S. Steel peer Nucor reported their third quarter earnings late last week, missing on the EPS but topping revenue outlooks. Notably, Nucor management said that Q410 will be the "most challenging quarter of the year." Steel Dynamics (Nasdaq: STLD) also reported an EPS of $0.09, which was 70% lower on increased revs for their third quarter. STLD expecting margin improvements in the fourth quarter.
With a win tomorrow, the company will report its first profit in several quarters, last reporting an EPS of $2.65 in the fourth quarter of 2008. Look for management comments on raw input prices and any dividend information following their 83.3% cut in early 2009.
United States Steel Corp. is expected to release their Q310 earnings on Monday, October 25, 2010, at approximately 4:30pm EDT. Stay tuned to StreetInsider.com's EPS Central section to see our analysis of the highly-anticipated quarterly results within seconds of their release.
The company is expected to report EPS of $0.23 on revs of $4.53 billion. Last quarter, the company posted a loss of $0.17 on revs of $4.68 billion. Last year, X had an adjusted loss of $2.11 on revs of $2.80 billion.
Shares have increased through the quarter, gaining 15.1% to $43.84 at the end of September. Shares are trading 26.5% lower since the start of 2010, and 3.4% lower since the end of the quarter.
At a simple valuation, shares are trading for a P/E of 10x FY11 EPS estimates, compared to 12.5x for AK Steel (NYSE: AKS), 13.9x for Nucor Corp. (NYSE: NUE), and 11.5x for Arcelor Mittal (NYSE: MT).
Data from Bloomberg has 6 analysts with a Buy rating, 6 with a Hold, and one recommending to Sell. The analyst price target average is $57, with a High of $70 and a low of $44.
Analyst Ratings Through the Quarter
Goldman Sachs downgraded the shares in September, from Buy to Neutral. Goldman also lowered their FY11/FY12 estimates to to $3.60/$6.00 from $5.50/$7.50 on lower expected margins in flat rolled carbon products both in the US and Europe. The firm's price target went from $51 to $45.
Also, Longbow Research lowered from Buy to Neutral, but hanging on to their $60 price target.
Summary
U.S. Steel peer Nucor reported their third quarter earnings late last week, missing on the EPS but topping revenue outlooks. Notably, Nucor management said that Q410 will be the "most challenging quarter of the year." Steel Dynamics (Nasdaq: STLD) also reported an EPS of $0.09, which was 70% lower on increased revs for their third quarter. STLD expecting margin improvements in the fourth quarter.
With a win tomorrow, the company will report its first profit in several quarters, last reporting an EPS of $2.65 in the fourth quarter of 2008. Look for management comments on raw input prices and any dividend information following their 83.3% cut in early 2009.
United States Steel Corp. is expected to release their Q310 earnings on Monday, October 25, 2010, at approximately 4:30pm EDT. Stay tuned to StreetInsider.com's EPS Central section to see our analysis of the highly-anticipated quarterly results within seconds of their release.
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