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U.S. Steel -10% as underwhelming Q3 guidance depresses investors

|About: United States Steel Corpora... (X)|By:, SA News Editor

U.S. Steel (X -10.3%) tumbles to a 10% loss despite reporting better than expected Q2 results and raising its full-year earnings forecast, but its Q3 earnings forecast trails analyst estimates.

The company says it expects Q3 earnings of $525M, lower than the $583M consensus, and the lackluster outlook will "underwhelm the market,” said analysts at Morgan Stanley, who were expecting $577M.

“Given the amount of cash coming from this company right now, I think people are getting a little impatient,” Seth Rosenfeld, a managing director at Jefferies in London, told Bloomberg. “If you think the macro economic outlook is untenable and you think demand could suffer because of these trade policies, you’re a lot less patient.”

Even as Trump administration tariffs have helped spark a 40% surge in domestic steel prices, U.S. Steel shares have lost ground while most rival producers have gained.


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