United States Steel Posts Q3 Earnings Beat On Improved Steel Shipments, Despite Weak Prices

United States Steel Corp X reported Q3 FY23 revenues of $4.43 billion, beating the consensus of $4.39 billion.

Average realized price for Flat-Rolled product declined to $1,036/ton (from $1,232/ton a year ago), Mini Mill to $901/ton ($1,096/ton prior year) and U. S. Steel Europe to $852/ton (from $1,021/ton year ago).

Total steel shipments rose to $3,782 thousands net tons from $3,698 thousands net tons a year ago.

Adjusted EBITDA of $578 million (better than the guidance of $550 million) declined from $861 million a year ago.

Adjusted EPS was $1.40, surpassing the consensus of $1.15. This was better than the company's guidance of $1.10-$1.15.

Operating cash flow stood at $1.71 billion in the nine months. 

As of September 30, 2023, cash and cash equivalents stood at $3.26 billion.

Also Read: Cleveland-Cliffs And U.S. Steel Lock Horns Amid Tensions In Sale Proceedings: Report

"Our non-grain oriented, or NGO, electrical steel line produced its first coil in September and first industrial grade coil in October....Our NGO line can produce the thinnest gauges, widest widths, and biggest coils in the domestic industry today. This investment further expands our capabilities to meet customers' needs. The nearly $4 billion of strategic investment in the Mini Mill segment is progressing on-time and budget," said David B. Burritt, President and CEO.

Dividend: The Board of Directors declared a dividend per share of $0.05, payable on December 7, 2023, to stockholders of record as of November 6, 2023.

Also Read: US Steel Transformation Will Lead To Major Value Creation, Says Bullish Analyst

Price Action: X shares are trading higher by 1.29% at $32.99 premarket on the last check Friday.