Earnings Cheat Sheet: US Steel Not As Strong As Expected

Oct.27.10 | About: United States (X)

United States Steel Corporation (NYSE:X) produces and sells steel products primarily in North America and Europe. The pride of Pittsburgh had a solid quarter of sales [see call transcript], but the company continues to post a loss for shareholders.

Earnings: Increased to a loss of $51 million ($0.35 per share) from a loss of $303 million ($2.11 per share) y-o-y.

Revenue: Increased to $4.5 billion from $2.82 billion.

Actual versus Wall Street Expectations: US Steel surprised to the downside as analysts expected a profit of $0.23 per share. However, revenues topped the $4.46 billion expected (FactSet Researchs).

Notable Stats:

  • Shipments decreased 5% to 5.6 million tons.
  • Spot customers reduced inventory levels in light of shorter lead times.
  • Inspection and repair costs eroded operating profits.

Did You Hear That? Chief Executive Officer John Surma said all divisions “had lower shipments and production as activity in most of our markets slowed.”

Official Company Earnings Release: Read all the details here.

Commentary: Shares of US Steel are trading below their 200 DMA and 50 DMA. As the chart below indicates, the stock is currently having problems and looks poised to retest some critical areas of support.

Click to enlarge

Disclosure: No positions.