U.S. Steel’s 3Q17 Earnings: What Excited Markets
U.S. Steel’s 3Q17 earnings
U.S. Steel Corporation (X), the second-largest US-based steel producer, released its 3Q17 earnings on October 31. The company posted net income of $147 million, which translates into EPS (earnings per share) of $0.83, or $0.92 after adjusting for one-time items.
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In 3Q17, U.S. Steel’s earnings were better than expected, marking the second consecutive quarter in which its earnings beat expectations. U.S. Steel posted a surprise loss in 1Q17 that sent its stock falling by more than 26%, the worst single-day fall in the company’s history.
AK Steel (AKS) also posted its 3Q17 earnings on October 31. The company reported a net loss of $5.8 million in the quarter, which translates into a per-share loss of $0.02. AK Steel’s 3Q17 earnings missed consensus estimates. The company’s 4Q17 outlook seems to have spooked markets, and the stock fell 21.5% after its earnings release. Steelmakers Nucor (NUE) and ArcelorMittal (MT) also closed with losses on October 31.
It’s been a mixed earnings season so far for steel investors (XME). While Nucor’s earnings were better than expected, Steel Dynamics’ earnings were in line with estimates. Commercial Metals’ fiscal 4Q17 earnings were worse than expected.
In this series, we’ll analyze U.S. Steel’s 3Q17 financial performance and explore what drove its 3Q17 earnings. We’ll also examine key takeaways from its earnings presentation and look at its 2017 earnings guidance. Let’s begin with a look at U.S. Steel’s 3Q17 revenue.