United States Steel Corporation (X) is experiencing a positive day on the stock market, with shares trading higher on Thursday. The company’s third-quarter 2024 guidance has boosted investor confidence.
The company expects adjusted net earnings per share to fall between $0.44 and $0.48, exceeding analysts’ estimates of $0.39. Additionally, the company anticipates an adjusted EBITDA of around $300 million for the third quarter. This figure aligns with the company’s prior outlook and reflects strong domestic demand for flat-rolled steel, despite a challenging pricing environment.
While the North American Flat-Rolled segment is showing resilience, the company is facing some difficulties. Europe is experiencing softening demand, leading to the temporary idling of Blast Furnace #1 after a planned 30-day outage. The Tubular segment is also facing headwinds due to weak pricing conditions.
However, the company remains optimistic. David B. Burritt, President and Chief Executive Officer, highlighted the company’s diverse order books and expects lower metallics costs to partially alleviate pricing pressures. He also pointed to the upcoming launch of the new Big River 2 mini mill, which is anticipated to begin operations in the fourth quarter of 2024.
Looking ahead, the company is progressing with regulatory reviews for its pending transaction with Nippon Steel, and is confident in securing approvals. They aim to close the deal by the end of the year.
As of last check on Thursday, X shares were trading higher by 2.47% at $37.69.
