Why Is Cleveland-Cliffs (CLF) Down 16.4% Since Last Earnings Report?

Core Viewpoint - Cleveland-Cliffs has experienced a decline in share price of approximately 16.4% since the last earnings report, underperforming the S&P 500, raising questions about the potential for a breakout or continued negative trend leading up to the next earnings release [1] Financial Performance - The third-quarter 2025 adjusted loss was 45 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 48 cents per share, compared to an adjusted loss of 33 cents per share in the same quarter last year [2] - Revenues increased by 3.6% year over year to $4,734 million, but fell short of the Zacks Consensus Estimate of $4,886.6 million [2] Operational Highlights - Steelmaking revenues were approximately $4.6 billion for the third quarter, reflecting a year-over-year increase of around 3% [3] - The average net selling price per net ton of steel products was $1,032, down about 1.2% year over year, but exceeded the estimate of $996 [3] - External sales volumes for steel products were approximately 4.03 million net tons, up around 5% year over year, but missed the estimate of 4.3 million net tons [3] Financial Position - As of the end of the third quarter, cash and cash equivalents stood at $66 million, an increase of approximately 8.2% from the previous quarter [4] - Long-term debt rose by 4% sequentially to $8,039 million, with total liquidity at $3.1 billion [4] Outlook - The company has revised its full-year 2025 guidance, lowering capital expenditures to approximately $525 million from $600 million, and reducing selling, general, and administrative expenses to around $550 million from $575 million [5] - Cleveland-Cliffs aims for steel unit cost reductions of about $50 per net ton compared to 2024, while maintaining depreciation, depletion, and amortization expenses at approximately $1.2 billion [6] Estimate Revisions - Since the earnings release, there has been a downward trend in estimates, with the consensus estimate shifting down by 25.88% [7] - The stock currently holds a Zacks Rank of 3 (Hold), indicating an expectation of an in-line return in the coming months [10] VGM Scores - Cleveland-Cliffs has a poor Growth Score of F, a Momentum Score of F, and a Value Score of F, placing it in the bottom 20% quintile for value investors, resulting in an aggregate VGM Score of F [9]