X - US Steel guides Q1 adjusted earnings below Wall Street estimates
2024-03-18 08:54:36 ET
- US Steel ( NYSE: X ) -1.2% pre-market Monday after forecasting Q1 adjusted earnings below analyst consensus, saying it remains focused on running its business as it moves towards closing its transaction with Nippon Steel.
- US Steel ( X ) said it expects Q1 adjusted net earnings of $0.80-$0.84/share, compared with $0.89 analyst consensus estimate, and Q1 adjusted EBITDA of ~$425M.
- The company said higher spot steel prices should be reflected in the segment's average selling prices in Q1, further supported by the favorable impact from fixed-priced contracts negotiated for 2024, partially offset by typical Q1 seasonal mining operations headwinds.
- US Steel ( X ) also expects the Mini Mill segment's Q1 adjusted EBITDA will nearly double Q4's performance, as average selling prices are seen meaningfully increasing Q/Q to reflect the segment's majority market-based monthly contract and spot price exposure.
- The company expects the European segment's Q1 adjusted EBITDA will be higher than Q4, while the Tubular segment's Q1 adjusted EBITDA is expected to be lower than Q4.
- US Steel ( X ) disclosed Friday night that it expects its acquisition by Nippon Steel ( OTCPK:NISTF ) ( OTCPK:NPSCY ) will close "later this year."