U.S. Steel Corp. (X) experienced a surge in its shares during after-hours trading on Monday following the release of a promising forecast. Despite the ongoing auto workers strike, the steel maker provided estimated figures that outperformed Wall Street’s predictions.
Positive Market Response
After a slight decline of 0.5% to close the regular session at $30.53, U.S. Steel shares saw a 1% increase after hours.
Strong Q3 Earnings Projection
U.S. Steel expects its adjusted third-quarter earnings to fall between $1.10 and $1.15 per share. Additionally, the company anticipates adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to reach approximately $550 million.
Acknowledging the Auto Workers’ Strike
In light of the United Auto Workers union strike that was announced earlier this month, U.S. Steel’s CEO, David Burritt, emphasized that the provided guidance includes the anticipated impact on the company’s third-quarter financial results.
Strategic Operational Adjustments
To ensure a balanced melt capacity and efficient customer demand fulfillment, U.S. Steel plans to temporarily idle blast furnace ‘B’ at Granite City Works. Simultaneously, the company will redirect volumes to other domestic facilities.
Analyst Expectations Surpassed
Market analysts surveyed by FactSet had initially forecasted an average earnings per share of $1.01 and an adjusted EBITDA of $512.2 million. However, U.S. Steel’s projections have exceeded these expectations, further instilling confidence in its performance.
Amidst the auto workers’ strike, U.S. Steel Corp. continues to navigate market challenges while delivering promising results.