Cleveland-Cliffs to Post Q3 Earnings: What's in Store for the Stock?

Core Viewpoint - Cleveland-Cliffs Inc. (CLF) is expected to report third-quarter 2024 results on November 4, with anticipated challenges due to lower steel prices despite some cost-saving measures [1][5]. Financial Performance - The Zacks Consensus Estimate for CLF's third-quarter consolidated revenues is $4,763.4 million, indicating a year-over-year decline of 15% [4]. - CLF has a trailing four-quarter earnings surprise of approximately 15.4% on average [1]. - The expected average net selling price per net ton of steel products is $1,048, reflecting a 6.8% sequential decrease [7]. - External sales volumes for steel products are estimated at 4.04 million net tons, suggesting a 1.2% sequential rise [7]. Market Conditions - U.S. steel prices have experienced a significant decline, dropping more than 40% from $1,200 per short ton at the beginning of 2024, influenced by reduced demand and increased imports [5][6]. - Current prices are around $700 per short ton, with a modest uptick due to recent price hikes, but a significant recovery is not expected in the near term [6]. Cost Management - Cleveland-Cliffs is projected to have achieved a $30 per ton sequential decline in steelmaking unit costs during the third quarter [8]. Earnings Prediction - The Earnings ESP for CLF is -10.62%, with a consensus estimate indicating a loss of 30 cents for the third quarter [10].