Cleveland-Cliffs (NYSE:CLF) is scheduled to announce Q3 results on Tuesday, Oct. 25, before market open.
Consensus EPS estimate is $0.51 and consensus revenue estimate is $5.79B (-3.5% Y/Y).
Over the last 2 years, CLF has beaten EPS estimates 25% of the time and revenue estimates 38% of the time.
Over the last 3 months, EPS estimates have seen 4 downward revisions. Revenue estimates have seen 1 upward revision and 3 downward.
GLJ Research double downgraded Cleveland-Cliffs (CLF) as Q3 earnings estimates are too optimistic. While the Street expects Q3 EBITDA to be ~$1B, the brokerage guided for ~$820M, based on the firm's implied guidance for flattish production volumes and operating expenses, and lower Q/Q average selling prices.
SA contributor Leo Nelissen said despite headwinds, Cleveland-Cliffs (CLF) is holding up better than expected thanks to internal supply chain resilience, fixed-price contracts, low leverage and rebounding auto production.
Shares of the steelmaker fell after its Q2 earnings missed estimates, weighed by higher operating costs and supply chain issues. CEO Lourenco Goncalves played down the threat of a recession and higher rates hurting auto demand, saying supply chain problems and COVID-related production outages led to pent-up demand for automobiles.
- Mesabi Trust (MSB) said there will be no distribution this month due to uncertainties caused by Cleveland-Cliffs' (CLF) move to extend idling of operations at Northshore Mining.
- Cleveland-Cliffs' (CLF) new 4-year labor deal with the United Steelworkers was ratified, with base wages expected to rise 20% during the contract period.
- The firm's shares likely gained after better-than-expected Q3 production data from GM and Ford as it has heavy exposure to the automotive market.
- The steelmaker reportedly raised current spot market base prices for all carbon steel hot rolled, cold rolled and coated steel products by a minimum of $75/ton.