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Market Overview

United States Steel's Earnings: A Preview

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On Thursday, January 28, United States Steel (NYSE:X) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Based on United States Steel management projections, analysts predict EPS of $0.64 on revenue of $2.58 billion. In the same quarter last year, United States Steel reported EPS of $0.64 on revenue of $2.82 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to report earnings in line when it publishes results Thursday, earnings would be down 0%. Revenue would have fallen 8.64% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate -1.45 -2.82 -0.88 -1.11
EPS Actual -1.21 -2.67 -0.73 -0.64
Revenue Estimate 2.22 B 1.84 B 2.78 B 2.78 B
Revenue Actual 2.34 B 2.09 B 2.75 B 2.82 B

Stock Performance

Shares of United States Steel were trading at $18.15 as of January 26. Over the last 52-week period, shares are up 83.55%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. United States Steel is scheduled to hold the call at 08:30:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings