Earnings Preview: United States Steel

United States Steel (X) is expected to report Q2 earnings before market open Tuesday, July 29, with a conference call scheduled for 2:00 p.m. ET.

Guidance

The consensus estimate is $3.91 for EPS and $5.90B for revenue, according to First Call. The guidance that the company provided from its last earnings call was that it see Q2 segment income from operations "well above" Q1.

Analyst Views

Goldman expects strong Q2 earnings reports from steel mills and steel processors under its coverage. The firm also expects guidance on the outlook to be positive, reflecting strong global steel pricing and demand and a weak dollar, which together should allow continued favorable market conditions in the U.S. and globally to continue. Goldman sees strength continuing for steel despite recessionary demand conditions in the U.S., slowing economic activity in Western Europe, and growing fears of a global economic slowdown. The firm sees lower steel stock prices, after the negative impact of these fears about global growth as providing good entry points for investors. U.S. Steel's competitors, Nucor (NUE), Reliance Steel (RS), Steel Dynamics (STLD), AK Steel (AKS), all posted strong June Quarters.