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The Steel Symphony: U.S. Steel’s Resilience Amidst Guided EPS Dip

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  The Steel Symphony: U.S. Steel’s Resilience Amidst Guided EPS Dip

Charting the Course

United States Steel CorporationX revealed its first-quarter FY24 guidance today.

The company foresees adjusted EPS of $0.80-$0.84 (compared to the consensus of $0.89) and envisions adjusted EBITDA around $425 million.

In the Flat-Rolled segment, adjusted EBITDA is poised to rise Q/Q, fueled by surging spot steel prices and the auspicious impact of fixed-priced contracts inked for 2024.

Expectations run high for the Mini Mill segment, with adjusted EBITDA slated to nearly double the fourth quarter’s showing, fueled by a significant Q/Q surge in average selling prices.

The European segment might also see a Q/Q uptick in adjusted EBITDA, propelled by soaring steel prices, reduced energy costs, and improved operational efficiencies.

Conversely, the Tubular segment might experience a downward trend in adjusted EBITDA Q/Q, attributed to dwindling selling prices and shipment volumes.

CEO’s Overture

David B. Burritt, President and Chief Executive Officer, remarked, “We persist in managing our operations diligently as we inch closer to finalizing our merger with Nippon Steel Corporation. Our projected first-quarter performance aligns with our previous expectations, reflecting robust steel demand, stellar operational execution, and the unwavering commitment of our workforce to exceed customer expectations.”

“Eagerly anticipating our union with Nippon Steel Corporation to create the ultimate steel powerhouse endowed with world-class capabilities.”

Related: “American Steel Companies Powered By American Steel Workers” – President Biden Champions American Steel Workers Amidst Nippon Steel’s U.S. Steel Acquisition Bid

In the previous month, U.S. Steel announced fourth-quarter earnings of $0.67 per share, surpassing the analyst consensus estimate of 26 cents by an impressive 157.69%.

Price Movement: X shares are trading up by 0.41% at $39.01 as of the latest Monday check.

Photo courtesy of Dennis Diatel on Shutterstock