Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Why US Steel’s Q3 Report Might Include A Guidance Cut

Courtesy of Benzinga.

Why US Steel's Q3 Report Might Include A Guidance Cut

Investors are encouraged to sell their stakes in United States Steel Corporation (NYSE: X), according to analysts at Axiom. The firm’s Gordon Johnson maintains a Sell rating on US Steel’s stock and expects the company to revise its guidance to the downside in conjunction with Tuesday’s earnings report.

U.S. Steel is expected to slash its 2017 EBITDA guidance by around 25 percent, according to Johnson’s proprietary EBITDA guidance tracker analysis. U.S. Steel previously guided its 2017 EBITDA to be $1.1 billion in 2017, but now a revision to $828 million is likely.

The analysis takes into account the change in hot-rolled coil steel spot prices as of U.S. Steel’s current and prior quarter earnings and the change in the company’s EBITDA guidance as of the current and prior quarter earnings among other factors.

“While, admittedly, this approach looks at just one facet of X’s business, given, in general, Tubular- and European steel mkt trends tend to move in tandem w/ the US mkt, we find our approach useful,” the analyst wrote (see his track record here).

Also, the steel market likely experienced headwinds in the auto sector as evidence by General Motors Company (NYSE: GM)’s third-quarter loss of $3 billion, which marks its first loss since fourth-quarter 2019.

Finally, the financial model approach when using a 90-percent confidence interval over five quarters dating back to second-quarter 2016, has predicted the company’s EBITDA within 82 percent of the guided number, Johnson said.

Related Links:

A Peek Into The Markets: U.S. Stock Futures Rise Ahead Of Mastercard, Kellogg Earnings

Earnings Scheduled For October 31, 2017

Latest Ratings for X

Date Firm Action From To
Oct 2017 Bank of America Maintains Buy
Sep 2017 Cowen & Co. Downgrades Market Perform Underperform
Sep 2017 Citigroup Maintains Sell

View More Analyst Ratings for X


View the Latest Analyst Ratings

Posted-In: Analyst Color Earnings News Guidance Short Ideas Commodities Previews Markets Best of Benzinga


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!