U.S. Steel's Earnings and Revenues Surpass Estimates in Q3

Core Insights - United States Steel Corporation (X) reported a profit of $119 million or 48 cents for Q3 2024, a decline of approximately 60$299 million or $1.20 per share in the same quarter last year. Adjusted earnings per share were 56 cents, down from$1.40 a year ago, but exceeded the Zacks Consensus Estimate of 45 cents [1][2] Financial Performance - Revenues decreased by around 13% year over year to $3,853 million, surpassing the Zacks Consensus Estimate of$3,736 million [2] - Total steel shipments were 3,516,000 tons, down approximately 7% year over year, and below the estimate of 3,619,000 tons [2] Segment Highlights - Flat-Rolled Segment: EBIT was $106 million, down from$225 million a year ago. Shipments fell roughly 11.7% to 1,905,000 tons, with an average realized price per ton of $993, down around 4.2$940 [3] - Mini Mill Segment: Reported a loss of $28 million compared to a profit of$42 million a year ago. Shipments increased by 7.3% to 602,000 tons, with an average realized price per ton of $800, down around 11.2$806 [4] - U.S. Steel Europe: Achieved a profit of $7 million, recovering from a loss of$13 million a year ago. Shipments fell around 6.2% to 899,000 tons, with an average realized price per ton of $802, down around 5.2$750 [5] - Tubular Segment: Posted a loss of $4 million compared to a profit of$87 million a year ago. Shipments rose roughly 5.7% to 110,000 tons, with an average realized price per ton of $1,805, down approximately 38.3$1,886 [6] Financial Position - At the end of the quarter, cash and cash equivalents were $1,773 million, down around 45$4,068 million, down 1.5% [7] Outlook - U.S. Steel anticipates fourth-quarter adjusted EBITDA to be between $225 million and$275 million. The North American Flat-Rolled unit results are expected to decline modestly due to lower average selling price projections. The Mini Mill segment is expected to improve, despite $25 million in related start-up and one-time construction expenditures. European results are likely to be lower due to unfavorable CO2 allocations and weak demand and pricing. Tubular segment results are projected to be roughly flat compared to Q3 [8] Stock Performance - The company's shares have increased by 11.9% over the past year, contrasting with an 8.7% decline in the industry [9]