Cleveland-Cliffs shares gain on earnings beat, strong outlook

Investing.com -- Cleveland-Cliffs stock jumped 8.9% in morning trading Monday after the steelmaker reported third-quarter results that topped earnings forecasts and issued strong guidance for the coming quarters.

The company posted adjusted earnings per share of $0.28, beating the consensus estimate of $0.22. Adjusted EBITDA totaled $612 million, exceeding the company's guidance of $575 million and more than double the $286 million recorded in the previous quarter.

Chairman and CEO Lourenco Goncalves described the period as the company's strongest quarter in three years. He said "average selling price, sales volumes, and unit costs all moved in the right direction relative to Q2 performance."

Revenue reached $5.6 billion, up 18% from the same period last year, though slightly below the consensus estimate of $5.71 billion.

The company projected fourth-quarter adjusted EBITDA of approximately $715 million. For the full year 2027, management expects adjusted EBITDA to exceed $4 billion, which the CFO said could average more than $1 billion per quarter under current market conditions.

Wells Fargo upgraded the stock to Overweight with a $14 price target. GLJ Research raised its price target to $17.48 from a previous level and maintained a Buy rating. Barclays kept its Underweight rating but increased its price target to $11 from $10.

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