Consensus EPS -$0.22, revenue $5.14B. The steelmaker has beaten estimates in three of the last four quarters. Focus on margins and steel demand outlook.
Alpha Score of 40 reflects weak overall profile with moderate momentum, poor value, moderate quality, moderate sentiment.
Cleveland-Cliffs (NYSE:CLF) reports second-quarter results before the open on Thursday, July 23. Consensus estimates call for a loss of $0.22 a share, narrower than the $0.50 loss a year earlier. Revenue is expected at $5.14 billion, up 4.3% from the prior year.
The steelmaker has beaten EPS estimates in three of the last four quarters. The pattern has been a small beat on the bottom line, often by a few cents. The revenue forecast implies a modest pickup in shipment volumes and pricing after a weak first quarter.
Steel demand has been a mixed picture. Hot-rolled coil prices have hovered near $700 a ton, up from the first-quarter trough but still below levels that would drive big margin expansion. Auto and energy end markets remain steady, while construction has shown some softness, analysts have said.
The key number to watch is the adjusted EBITDA margin. Cliffs has been working to reduce costs and improve its product mix toward higher-value automotive grades. Any improvement in that metric would signal that the cost-cutting is taking hold, several sell-side analysts have noted.
Cleveland-Cliffs reports before the open on Thursday, July 23.
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