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United States Steel Corp. (X) is scheduled to report its Q2 2012 results on July 31, 2012, after the bell. The street expects EPS and revenue of $0.47 and $4.99B, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from X and the news from its closest competitors.

United States Steel Corp. Revenue and Net Income History

Recent EPS Actuals vs. Estimates

In the last quarter it reported $0.67 EPS, beating analyst estimates of $0.45.

United States Steel Corp. EPS Historical Results vs Estimates

The consensus EPS estimate is $0.47 based on 17 analysts' estimates, down from $1.12 a year ago. Revenue estimates are $4.99B, down from $5.12B a year ago. The median target price by analysts for the stock is $27.00.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On July 22, 2012, Imperial Capital initiated Outperform rating for the company.
  • On March 19, 2012, UBS reiterated Buy rating for the company.
  • On February 21, 2012, Longbow downgraded the company from Buy to Neutral.
  • On February 1, 2012, UBS reiterated Buy rating for the company.
  • On February 1, 2012, Barclays Capital reiterated Equal Weight rating for the company.

Latest News

  • On March 12, 2012, United States Steel Corp announced its intention to offer, subject to market and other conditions, $400 million aggregate principal amount of senior unsecured notes due 2022.
  • On March 12, 2012, United States Steel Corp announced the pricing of its public offering of $400,000,000 aggregate principal amount of 7.500% Senior Notes due 2022. The Notes were priced at 100% of the principal amount.
  • On January 31, 2012, United States Steel Corp announced that for the first quarter of 2013, it expects to report a significant improvement in the operating results as compared to the fourth quarter, mainly driven by improved average realized prices and shipments for the Flat-rolled segment.
  • On January 30, 2012, United States Steel Corp announced a plan for the sale of U. S. Steel Serbia d.o.o. to the Republic of Serbia for a nominal purchase price, subject to finalization and execution of definitive agreements.

Competitors

AK Steel Holding Corporation (AKS), Allegheny Technologies (ATI), Commercial Metals Company (CMC), ArcelorMittal (MT), and Steel Dynamics (STLD) are considered competitors for United States Steel Corporation and the table below provides the key metrics for these companies and the industry.

United States Steel Corp. key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies for the last one year period.

X Chart
(Click to enlarge)

X data by YCharts

Competitors' Latest Development

  • On July 25, 2012, Allegheny Technologies Inc. announced that for fiscal 2012, it expects sales to be approximately $5.3 to $5.4 billion. According to I/B/E/S Estimates, analysts were expecting the Company to report revenue of $5.60 billion for fiscal 2012.
  • On July 25, 2012, ArcelorMittal announced the sale of 48.1% stake in Paul Wurth Group to SMS GmbH. The transaction is expected to be completed by the end of the third quarter of 2012.
  • On July 24, 2012, The Wall Street Journal reported that AK Steel Holding Corp. swung to a second-quarter loss as the steelmaker saw its revenue fall 14% amid double-digit shipment declines and it also unveiled plans to suspend its quarterly dividend.
  • On June 27, 2012, Commercial Metals Company announced that the Board of Directors of CMC declared a quarterly dividend of $0.12 on June 26 for shareholders of record on July 11, 2012.
  • On June 18, 2012, AK Steel announced that for second quarter of 2012, it expects net income of between $0.04 and $0.06 per diluted share (EPS) of common stock, which would represent an improvement compared to the loss of $0.11 per diluted share reported for the first quarter of 2012.
  • On June 15, 2012, Steel Dynamics, Inc. announced that for the second quarter of 2012, it expects earnings to be in the range of $0.15 to $0.20 per diluted share. According to I/B/E/S Estimates, analysts were expecting the Company to report EPS of $0.24 for the second quarter of 2012.
  • On June 6, 2012, ArcelorMittal and the Valin Group announced that ArcelorMittal will increase its shareholding in the downstream automotive steel joint venture, VAMA (Valin ArcelorMittal Automotive), from 33% to 49%. VAMA is focused on establishing itself as a supplier of high-strength steels and value-added products for China's fast growing automotive market.
  • On June 6, 2012, Allegheny Technologies Incorporated announced that its thin titanium Precision Rolled Strip product was selected by the Sensors and Integrated Systems Division of the Goodrich Corporation, for use in heated floor panels for commercial aircraft.
  • On June 4, 2012, Commercial Metals Company announced the completion of the sale of Croatian Pipe Mill and wholly owned subsidiary, CMC Sisak, d.o.o. (CMC Sisak), pursuant to a definitive purchase agreement whereby CMC sold all of the outstanding shares of CMC Sisak to the Danieli Group - Steel Making Division by the Danieli holding company, Industrielle Beteiligung SA (Danieli).
  • On May 10, 2012, ArcelorMittal announced that it has entered into an agreement to divest its 23.48% interest in Enovos International SA to a fund managed by AXA Private Equity for a purchase price of EUR330 million.
  • On April 25, 2012, Allegheny Technologies Inc. reaffirmed fiscal 2012 guidance and expects revenue growth of at least 10%. The Company reported revenue of $5.183 billion in fiscal 2011.
  • On March 20, 2012, AK Steel announced that its subsidiary, AK Steel Corporation (AK Steel), has successfully priced a public offering of $300 million of 8.375% senior notes due 2022.
  • On March 16, 2012, Steel Dynamics, Inc. announced that for the first quarter of 2012, it expects earnings to be in the range of $0.15 to $0.20 per diluted share. Estimated earnings for the first quarter include a reduction of approximately $.03 per diluted share, representing expenses, net of interest cost savings, associated with the company's announced financing activities which occurred in January.

Technical Overview


The stock has a market capitalization of $2.58B and is currently trading at $17.93 with a 52 week range of $17.67 - $41.04. The stock's year-to-date performance has been -32.01%. It is currently trading below 20, 50 and 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: United States Steel Corporation Reports Q2 Earnings On July 31