US Steel Q3 Earnings Preview: Transformation And Strategic Acquisition In The Cards
Portfolio Pulse from Surbhi Jain
US Steel (NYSE:X) is set to report its Q3 earnings on Oct. 26. The company is considering strategic options, including a $7.1 billion acquisition offer from Cleveland-Cliffs (NYSE:CLF). US Steel is undergoing a transformation, investing in mini mills and EAFs, which are expected to benefit from the Inflation Reduction Act. The company's stock is trading at attractive valuations among competitors such as Nucor (NYSE:NUE), Reliance Steel & Aluminum (NYSE:RS), Ternium (NYSE:TX), Carpenter Tech (NYSE:CRS), Vale (NYSE:VALE) and Ramaco Resources (NASDAQ:METCB). Wall Street analysts expect US Steel to report $1.15 in EPS for the quarter and $4.39 billion in revenue.
October 26, 2023 | 12:58 pm
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POSITIVE IMPACT
US Steel is set to report its Q3 earnings and is considering a $7.1 billion acquisition offer from Cleveland-Cliffs. The company is undergoing a transformation, which could potentially boost its EBITDA growth and free cash flow.
The potential acquisition and the ongoing transformation could have a positive impact on US Steel's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Cleveland-Cliffs has made a $7.1 billion acquisition offer to US Steel.
The acquisition offer could potentially impact Cleveland-Cliffs' stock price, but the outcome is uncertain at this stage.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80