U.S. Steel Guides Q1 EPS Below Street Estimate, Says Nippon Steel Merger Will Make It 'Best Steelmaker'
Portfolio Pulse from Lekha Gupta
U.S. Steel (NYSE:X) forecasts Q1 EPS of $0.80-$0.84, below the consensus of $0.89, with adjusted EBITDA around $425 million. The company expects improvements in its Flat-Rolled and Mini Mill segments, while anticipating a decline in the Tubular segment. The merger with Nippon Steel is highlighted as a strategic move towards becoming the 'Best Steelmaker'. Last quarter, U.S. Steel exceeded earnings expectations, and its shares saw a slight increase.
March 18, 2024 | 4:40 pm
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U.S. Steel forecasts Q1 EPS below expectations but anticipates segment improvements and benefits from the Nippon Steel merger.
The guidance of lower EPS than expected could initially concern investors, potentially impacting the stock negatively. However, the anticipated improvements in various segments and the strategic merger with Nippon Steel could offset concerns, presenting a neutral to slightly positive outlook in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100