Market Overview

Questions Remain For U.S. Steel, Guidance Cuts Deeper Than Initially Understood


United States Steel Corporation (NYSE: X) investors are reeling following a disappointing first quarter earnings release that saw management cut 2017 EBITDA guidance by at least $200 million. Shares experienced their biggest decline since the company went public 26 years ago.

Analysts believe the guidance cut could ultimately be much larger than initially expected. Deutsche Bank's Jorge Beristain lowered his rating from Buy to Hold and lowered his price target from $45 to $30.

Deutsche Bank cut its 2017-2019E EBITDA forecast by about 18 percent on average and adjusted EPS by 52 percent.

“[W]e were hopeful that today’s conf. call would clarify 1Q17/guide, but responses to Q&A proved lacking. With management credibility diminished we see better relative options available to express view on US steel industry recovery,” Deutsche Bank said in a note.

Analysts remain particularly concerned about the company’s cash burn, with management’s decision to accelerate its Asset Revitalization Plan (ARP) which has seen muted volume benefits.  

“While the move is aimed at improving LT profitability, we believe, could result in short term volatility in performance akin to 1Q17 and higher cash burn,” Deutsche Bank said.

Shares of U.S. Steel Corporation were down another 1.3 percent Thursday afternoon.

Related Links:

U.S. Steel: Q1 Was Bad, But Things May Only Get Worse From Here

U.S. Steel Plummets 25% After Q1 Miss

Latest Ratings for X

Dec 2019Initiates Coverage OnBuy
Nov 2019MaintainsSell
Nov 2019MaintainsBuy

View More Analyst Ratings for X
View the Latest Analyst Ratings

Posted-In: Deutsche Bank United States Steel CorporationAnalyst Color Downgrades Price Target Analyst Ratings


Related Articles (X)

View Comments and Join the Discussion!

Latest Ratings

TOLGoldman SachsInitiates Coverage On42.0
KBHGoldman SachsInitiates Coverage On36.0
YEXTSunTrust Robinson HumphreyMaintains28.0
LHCGSunTrust Robinson HumphreyMaintains160.0
DLRSunTrust Robinson HumphreyMaintains140.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

2 Ways Buffalo Wild Wings Could Still Win After Q1 Disappoints

20 Biggest Mid-Day Gainers For Thursday