uploads///accountant _

Cleveland-Cliffs’s Q3 2018 Results: What’s in the Cards?

By

Oct. 15 2018, Published 4:40 p.m. ET

Upcoming third-quarter results

Cleveland-Cliffs (CLF) is slated to release its third-quarter results before the market opens on October 19. It will have a conference call with analysts and investors on the same day at 10:00 AM EDT. CLF’s second-quarter results were a solid beat on expectations.

Cleveland-Cliffs stock has significantly outperformed its US (DIA) steel peers year-to-date. Compared to CLF’s 67.0% rise, Steel Dynamics (STLD), Nucor (NUE), ArcelorMittal (MT), AK Steel (AKS), and U.S. Steel Corporation (X) have returned -1.7%, -4.4%, -11.8%, -18.2%, and -18.7%, respectively. See, Cleveland-Cliffs Stock Near Its 52-Week High-Looking ahead to 4Q for more about the reasons behind this significant divergence and CLF’s stock outlook.

Article continues below advertisement

What to look for in the results

Cleveland-Cliffs’s third-quarter results are important for investors for several reasons. Because the company is among the first companies in the US steel sector to report, its earnings are a relevant read for anyone interested in other US steel stocks and general market dynamics.

The company’s expectations for its third quarter were based on YTD (year-to-date) second-quarter prices. Due to the impact of tariffs, there has been a significant upward revision in domestic steel prices since then. So it will be interesting to see the company’s outlook for the rest of the year.

During its third-quarter earnings call, Cleveland-Cliffs’ management is expected to provide an update about the company’s hot briquetted iron plant and its arrangements to start the project. Cliffs management is also expected to address the impact of trade tariffs on steel imports and steel pricing in the United States and the upside left from these tariffs. See Revisiting the Case: How Does Cleveland-Cliffs Look Now? for more.

In this series, we’ll do an in-depth analysis of CLF’s current position and future outlook, based on its fundamentals and market dynamics.

Series preview

In this series, we’ll see what investors can expect from Cleveland-Cliffs’ third-quarter earnings report. We’ll look at the expectations for the company’s volumes and realized prices for its US (SPY) division. We’ll also discuss the company’s earnings estimates.

Let’s start by looking at the expectations for CLF’s US volumes in the next part of this series.

Advertisement

More From Market Realist