Cleveland-Cliffs to Post Q4 Earnings: What's in Store for the Stock?

Core Viewpoint - Cleveland-Cliffs Inc. (CLF) is expected to report a decline in fourth-quarter 2024 results, influenced by lower steel prices and reduced volumes despite cost-cutting measures [2][4]. Revenue Estimates - The Zacks Consensus Estimate for CLF's fourth-quarter consolidated revenues is $4,313.4 million, indicating a year-over-year decline of 15.6$1,200 per short ton at the beginning of 2024 due to reduced demand and oversupply [5]. - The average net selling price per net ton of steel products is estimated at $985, reflecting a roughly 10% year-over-year decrease [6]. - External sales volumes for steel products are projected at 3.81 million net tons, suggesting a 5.5% year-over-year decline [8]. Cost Management and Acquisitions - Despite the challenges, CLF is expected to benefit from actions taken to lower steelmaking unit costs, which may support its margins [8]. - The acquisition of Stelco Holdings Inc. on November 1, 2024, is expected to contribute positively to the fourth-quarter results [9]. Earnings Predictions - The Earnings ESP for CLF is -2.80%, with the consensus estimate for earnings indicating a loss of 64 cents for the fourth quarter [11]. - CLF currently holds a Zacks Rank of 5 (Strong Sell), suggesting a low probability of an earnings beat this season [10][11].