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How Cleveland-Cliffs Is Looking after Its Q1 2019 Results


Apr. 29 2019, Updated 1:48 p.m. ET

Cleveland-Cliffs’s Q1 2018 results beat

Cleveland-Cliffs (CLF) released its first-quarter results on April 25 before the markets opened. The company held a conference call with analysts that day. It reported EPS and revenue of -$0.08 and $157 million, beating analysts’ estimates of -$0.14 and $120 million, respectively. In Q4 2018, Cleveland-Cliffs missed analysts’ earnings estimate.

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CLF outperforms peers

Two days following the release of the results, CLF stock gained 6% on its earnings beat and strong outlook. This year, CLF stock has had an impressive run, gaining 31.2% and outperforming peers (DIA) by a wide margin. ArcelorMittal (MT), Steel Dynamics (STLD), AK Steel (AKS), Nucor (NUE), and U.S. Steel Corporation (X) have returned 5.2%, 5.1%, 6.2%, 8.8%, and -14.1% this year, respectively, while the S&P 500 (SPY) and Dow Jones Industrial Average (DIA) have gained 17.4% and 13.8%.

Strong outlook going forward

In a Cleveland-Cliffs press release, CEO Lourenco Goncalves said, “With the winter and the first quarter behind us, we enter the three strong quarters of a 2019 that is shaping up to be another multi-year high in adjusted EBITDA for Cleveland-Cliffs.” Goncalves also believes that strong manufacturing activity in the United States, supported by underappreciated tax reform and a shortage of iron ore and pellets, could boost CLF’s cash generating ability going forward.


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