Cleveland-Cliffs Slumps Following Disappointing Q4 Earnings Report: The Details

by Ryan Gustafson Benzinga Staff Writer

Zinger Key Points

Cleveland-Cliffs reports a Q4 EPS loss of five cents, versus losses of four cents, and revenue of $5.11 billion, versus $5.15 billion.
The company sees full-year steel shipment volumes of 16.5 million net tons. Q1 adj. EBITDA performance to meaningfully exceed Q/Q.
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Cleveland-Cliffs Inc. CLF shares are trading lower in Monday's after-hours session on the heels of the company's fourth-quarter earnings report. Here's an overview of the details.

What To Know: Cleveland-Cliffs reported quarterly adjusted losses of five cents per share, falling short of analyst expectations of losses of four cents by 25%.

The company reported quarterly sales of $5.11 billion, missing the Street's estimate of $5.15 billion, a 1.35% increase over sales of $5.04 billion from the same period last year.

Fourth-quarter steel product volume of 4.03 million net tons increased 5% compared to 3.83 million net tons in the same period last year while full-year 2023 steel product volume of 16.4 million net tons grew 11% compared to 14.7 million net tons in 2022.

Cleveland-Cliffs estimates full-year steel shipment volumes to be 16.5 million net tons, versus 16.4 million net tons in 2023. First-quarter adjusted EBITDA performance is anticipated to meaningfully exceed on a quarter-over-quarter basis.

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Lourenco Goncalves, Chairman, President and CEO of Cleveland-Cliffs, commented, saying, "2023 was another great year for Cleveland-Cliffs, in which we accomplished several goals in commercial, operations, finance and human resources. Steel demand remained healthy throughout the entire year, with our most important market – the automotive sector – performing well."

"Even with the UAW labor strike late in Q3 and into Q4, automotive steel demand remained consistently strong, as we anticipated. After it was clear that the strike was not creating any real issues in the marketplace, non-automotive clients de-stocking their inventories betting on lower steel prices were compelled to buy steel at higher prices."

CLF Price Action: Shares of Cleveland-Cliffs were down 1.90% at $18.53 in the after-hours session at the time of publication, according to Benzinga Pro.

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CLFCleveland-Cliffs Inc

$9.200.67%