United States Steel Corp. (X – Free Report) released its second quarter fiscal 2017 financial results, posting earnings of $1.07 cents per share and revenues of $3.14 billion. Currently, X is a Zacks Rank #3 (Hold), and is up almost 9% to $26.62 per share in trading shortly after its earnings report was released.
U.S. Steel:
Beat earnings estimates. The steel giant posted earnings of $1.07 cents per share, soaring past the Zacks Consensus Estimate of 40 cents per share. This number excludes non-recurring items of 41 cents. Net earnings for the quarter came in at $261 million.
Beat revenue estimates. The company saw revenue figures of $3.14 billion, surpassing our consensus estimate of $2.98 billion and growing 21.7% year-over-year.
U.S. Steel’s Flat-Rolled segment improved significantly from Q1, coming in at $218 million for the second quarter thanks to higher results from its mining operations and a second consecutive quarter of increasing average realized prices and shipments.
Its European segment, however, declined compared with last quarter due to an unfavorable first-in-first-out (FIFO) inventory impact; U.S. Steel Europe posted $55 million in segment earnings for Q2.
U.S. Steel’s Tubular and Other Businesses segments reported earnings of $(29) million and 9 million, respectively.
Looking ahead, U.S. Steel expects net earnings of $300 million for fiscal 2017, or $1.70 per share, and 2017 adjusted EBITDA of approximately $1.1 billion.
U. S. Steel President and Chief Executive Officer Dave Burritt said, “Our facilities performed better in the second quarter, particularly in our Flat-Rolled segment…We are focused on our strategic priorities: driving operational excellence across our business – from our plants to our support teams; investing in our facilities through our asset revitalization program; and providing our employees with the resources they need to implement positive, substantive changes.”
