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U.S. Steel +9% as Q2 earnings, full-year outlook far exceed estimates

Published 07/25/2017, 04:45 PM
© Reuters.  U.S. Steel +9% as Q2 earnings, full-year outlook far exceed estimates
  • U.S. Steel (NYSE:X) +8.9% AH after routing Q2 earnings expectations as revenues rose by a higher than expected 22% Y/Y.
  • EPS of $1.48 includes a $0.41 gain representing the recovery in excess of retained interest resulting from the sale of U. S. Steel Canada, but Q1 loss $1.03/share and Q2 2016 lost $0.32.
  • Q2 segment earnings improved by $300M from Q1, most of it in the flat-rolled segment, which the company credits to better operations combined with higher prices and volumes and improved results from mining operations.
  • X raises its FY 2017 EPS guidance to $1.70 from $1.50, far ahead of the $1.08 analyst consensus estimate, and consolidated EBITDA of ~$1.1B.
  • "We are seeing a more bullish sentiment in the markets served by our Flat-Rolled and European segments right now, as prices have been increasing and overall demand has been stable."
  • Now read: Friedman - Deep Value Contrarian Play


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