- U.S. Steel's (NYSE:X) guidance for breakeven EBITDA in 2016 is not "realistic" following the company's dismal Q4 results, Axiom Capital's Gordon Johnson says as he maintains his Sell recommendation.
- Johnson says arriving at U.S. Steel's break-even outlook for 2016 EBITDA requires "hockey-stick-like assumptions higher" around hot-rolled coil prices, steel shipments and a recovery in the tubular segment - the same optimism that Johnson believes caused "such a draconian miss" in the company's original adjusted EBITDA guidance.
- Johnson foresees another year of likely U.S. Steel earnings revisions lower in 2016, although probably delayed, similar to last year’s experience.
- X shares fell 14.3% in today's trade.